Cascade Bancorp's lead investors are giving the company two more weeks to find additional capital.
The $2.2 billion-asset Cascade said Monday that David F. Bolger and an affiliate of Donald Marron's Lightyear Capital LLC private-equity fund have agreed to give Cascade until Sept. 15 to find more equity partners. The original deadline was May 31; it has been extended several times.
Bolger has agreed to invest $25 million and Lightyear $40 million, though Cascade also must raise $85 million in equity.
In the meantime, the Bend, Ore., company filed a lawsuit Aug. 2 in federal court against Cohen & Co. Financial Management, alleging that Cohen has failed to honor an agreement to transfer $66.5 million of trust-preferred securities to Cascade for $13.3 million in redeemable notes, which would be paid at the closing of the capital raise.
Cascade is operating under a regulatory order to boost capital ratios. But it has said additional equity partners won't invest until it completes the deal with Cohen.