HOUSTON - In a rare public denunciation of regulators, First City Bancorporation of Texas bitterly disputed the seizure of its banks this month.
Houston-based First City said a pending $400 million recapitalization plan would have placed it on "sound financial footing" by Dec. 15. It also claimed to have nonbinding commitments for $90 million in new capital, believed it could raise an additional $30 million, and said it also had reached agreements to sell 13 banks for $230 million.
First City issued the statement with an announcement last week that it consented to the involuntary bankruptcy petition filed against it by creditors on Oct. 31, and that it also received permission to operate as a debtor-in-possession.
