Two other corporate mergers are in the works; Virginia Corporate FCU is being merged into Mid-Atlantic Corporate FCU in Pennsylvania; and Alabama’s Corporate America CU is preparing to combine with Louisiana Corporate CU.DALLAS – Members of Southwest Corporate Bridge FCU have approved a reverse merger of the remnants of the failed corporate into Georgia Corporate FCU, one of three pending corporate combinations.
In balloting that began at a special meeting held online last week 93% of the 540 voting members of Southwest approved the merger. The vote represented just 39% of the one-time $13 billion corporate’s 1,300 members.
Southwest Corporate Bridge represents a shell of its former self after its main asset, its investment portfolio, was liquidated by NCUA following the agency’s Sept. 24 takeover of Southwest and two other corporate failures, Members United Corporate FCU and Constitution Corporate FCU. Consequently, the new corporate will use the Georgia Corporate charter, though Southwest will dominate the board of the new entity, with eight of the nine seats.
One of the first steps of the merger plan, which has been submitted to NCUA for approval, is a road show to raise perpetual contributed capital under NCUA’s new corporate regulations.
Two other corporate mergers are in the works; Virginia Corporate FCU is being merged into Mid-Atlantic Corporate FCU in Pennsylvania; and Alabama’s Corporate America CU is preparing to combine with Louisiana Corporate CU.
