Members To Vote On Corporate Merger
PLANO, Texas – More than 1,000 credit union members of Southwest Corporate FCU, now Southwest Corporate Bridge, next week will begin voting at a special meeting on the proposed merger of the remnants of the failed corporate into Georgia Corporate FCU.
The members, mostly from six Southwest states, can vote electronically at a webinar being held next Thursday or by mail or fax, with votes due by Jan. 26. The result of the vote will be disclosed at a special meeting of the membership on Jan. 28.
The combination, really a reverse merger with the much larger corporate, the one-time $9 billion Southwest, merging into the $2 billion Georgia corporate, was approved by the Southwest Advisory Council and Georgia board last month. It is one of two pending corporate mergers. The other is of Virginia Corporate CU, or VaCorp, into Mid-Atlantic Corporate FCU.
Under the proposed Southwest/Georgia Corporate deal, members of Southwest will hold eight of the new corporate’s nine board seats, with one seat reserved for Georgia Corporate, known until recently as Georgia Central CU. The board will hire the CEO and the management, which is expected to be the same management team that guided Southwest before the NCUA takeover last fall.
The proposal will require that members contribute new capital, as Southwest dissipated all of its capital before its takeover by NCUA along with two other corporates, Members United Corporate FCU and Constitution Corporate FCU, on Sept. 24.
NCUA is in the process of liquidating the investments of those three corporate failures, along with those of U.S. Central FCU and WesCorp FCU.
The Southwest Advisory Council is recommending the Georgia Central merger out of six options presented to members. The others include chartering a new corporate, being part of a national payments processing CUSO, creating numerous CUSOs to provide the service currently provided by Southwest or consolidating with an existing CUSO.