The parent company of Cleveland's AmTrust Bank, filed for bankruptcy protection Monday, casting doubt on the future of the bank's more than 60 branches.
AmTrust Financial Corp., the corporate parent of AmTrust Bank, filed for Chapter 11 protection Monday in U.S. Bankruptcy Court in Cleveland. The company's bank unit and its 66 branches in Florida, Ohio and Arizona are not part of the Chapter 11 filing.
Peter Goldberg, AmTrust's chief executive and a member of the family that controls AmTrust, said in a court filing that the bank and its subsidiaries "will continue their business operations." Members of the Goldberg family hold about 77% of AmTrust's common stock, which trades on Pink Sheets.
AmTrust's bank and holding company are overseen by the Office of the Thrift Supervision. OTS issued two cease-and-desist orders to the bank and the holding company in November of last year.
Goldberg, in his sworn affidavit filed with the court, made no mention of any regulatory actions taken by OTS or the FDIC. Representatives for the FDIC, OTS and AmTrust were not immediately available for comment.
The holding company, formerly Ohio Savings Financial Corp., listed assets of $11.7 billion and debts of $11.5 billion.
Meanwhile, AmTrust also filed a lawsuit against a group of bondholders seeking to recover $12 million the company paid to the investors in the months before the bankruptcy filing.
The law firm of Squire, Sanders & Dempsey is handling AmTrust's Chapter 11 case.
The case number is 09-21323. Judge Pat E. Morgenstern-Clarren has been assigned to bankruptcy case.