The interim chief financial officer of Capitol Bancorp (CBCRQ) has quit.
The $1.75 billion-asset company in Lansing, Mich., said late last week in a two-sentence regulatory filing that Nicholas G. Hahn had "resigned as an employee." Capitol did not say who will take over for Hahn, who joined the company in September 2011.
Hahn's departure comes at a tumultuous time for the struggling company, which is attempting to navigate through a Chapter 11 restructuring that would force all of its existing stakeholders to take a 53% equity stake and allow for the infusion of new equity. But the company has struggled to find an investor to take the remaining 47% stake in exchange for $70 million to $115 million.
Earlier this month, Capitol said that ValStone Partners, a private equity firm in Michigan, had canceled a planned $50 million infusion. Capitol has said the Federal Deposit Insurance Corp. has delayed its restructuring by initially rejecting the company's request to cover due diligence fees for serious investors. The FDIC later agreed.
Several of Capitol's banks are critically undercapitalized and the New Mexico state banking regulator ordered the company to recapitalize its bank there by Dec. 20 or it would have the authority to fail the institution. It is unclear if Capitol was able to meet those demands.
At the time of Hahn's hiring, Joseph Reid, Capitol's chief executive, said the new executive's "financial leadership, industry expertise and proven ability to assist organizations in transition are significant assets for our team." Prior to joining Capitol, Hahn was a financial and management consultant who had held CFO jobs at a national lender and Belgian bank-owned mortgage company.