Midwest Banc Holdings Inc. painted a bleak picture of its future in its quarterly report filed Thursday.
The $3.4 billion-asset company in Melrose Park, Ill., said in the filing with the Securities and Exchange Commission that it does not expect to satisfy capital requirements spelled out in a prompt corrective action directive issued by regulators to its Midwest Bank & Trust Co. unit on March 31.
That order gave the undercapitalized bank 45 days to become adequately capitalized or face liquidation.
In the filing, the company said it needs $250 million to become well capitalized. Yet it "has not received any commitment for a new capital investment, and presently does not expect to raise sufficient capital prior to the PCA deadline," it said in the filing.
"If the company does not promptly raise a sufficient amount of new equity capital or, alternatively, execute another strategic initiative, the company may become subject to a voluntary or involuntary bankruptcy filing, and the company believes it is likely that the bank would be placed into receivership by bank regulators," it said.