BMR Financial Group Considers a Sale
ATLANTA -- BMR Financial Group Inc. said it formed a committee to pursue the possibility of selling the company or any of its six banking subsidiaries.
BMR said the special committee, composed of five nonmanagement directors and led by Peter Maher, will recommend whether a sale is in the interest of the financial group and its shareholders. The investment bank of Alex. Brown & Sons was retained as an adviser.
A Losing Quarter
BMR announced the effort as it reported a net loss of $1.1 million, or 38 cents a share, for the third quarter, compared with a loss of $1.4 million, or 49 cents, a year earlier. The latest results stemmed from loan-loss provisions and real estate writedowns totaling $2.3 million.
BMR's sale of its consulting business at the end of 1990 resulted in a provision of $1.1 million for losses on consulting contracts in third-quarter 1990.
Mr. Maher said the board is concerned about uncertainty in the economy and the banking industry. The performance of BMR and other banks has been hurt by the weak real estate markets, he added, and these conditions are likely to continue.
Sale of Meigs Pondered
BMR said its board has authorized the special committee to pursue talks with former shareholders of Meigs County Bank, which the $300 million-asset BMR acquired in June.
The former Meigs shareholders have proposed to reacquire the bank and have threatened litigation if they cannot agree to a transaction.
BMR said its board would "vigorously defend" the company's position in any such litigation, but it believes a sale of Meigs to its former shareholders may be "advantageous."