MORRISTOWN, N.J. -- AmBase Corp. said its subsidiary, Carteret Savings Bank, received extra time from the Office of Thrift Supervision to arrange for a recapitalization without government assistance.
The thrift has until July 6, extended from May 27, to show "acceptable progress" toward recapitalization.
Otherwise, it is to be put up for sale in the regulator's accelerated-resolution program.
"The Northeast regional director of the OTS has concluded that we are making acceptable progress on our recapitalization program," said Richard A. Bianco, president and chief executive officer of AmBase and chairman, president, and chief executive of Carteret.
Largest in New Jersey
Carteret is the largest thrift in New Jersey, with $5.3 billion in assets as of yearend 1991.
"Our discussions with prospective investors are ongoing and we remain cautiously optimistic," Mr. Bianco added. "I would expect that if we continue to make significant progress, the OTS will grant additional extensions, if necessary."
The institution has retained Kidder, Peabody & Co. and Merrill Lynch & Co. to make a private placement of equity.