United Western requests exclusivity extension, awaits lawsuit ruling

By Caroline Salls

Pittsburgh, Sept. 27 - United Western Bancorp, Inc. requested a 45-day extension to its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Colorado.

The company wants to extend its exclusive filing period to Nov. 15 from Oct. 1 and its solicitation period to Jan. 11 from Nov. 27.

According to the motion, United Western's liquidation depends in large part on the outcome of a lawsuit filed against the Office of Thrift Supervision and the Federal Deposit Insurance Corp. The suit asks the court to rescind bank receivership or award monetary damages.

If sufficient monetary damages are awarded, United Western said it would propose a plan creating a structured payment formula with a detailed methodology for paying creditors and shareholders.

The company said it believed that a decision would be reached in the lawsuit before Oct. 1, but no decision has been rendered to date.

As a result, United Western said it has begun drafting a plan that addresses the possibility of recovery from the lawsuit, as well as the possibility that it would not win a recovery.

Since drafting that plan is more complicated than it would be if the outcome of the lawsuit was known, the company said it needs more time to draft and propose a liquidation plan.

It is also possible that the lawsuit will be decided during the extended periods, allowing the company to draft a more definite plan, the motion said.

United Western is the holding company for a Denver community-based bank. The company filed for bankruptcy on March 2, 2012 under Chapter 11 case number 12-13815.

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