First Republic Bank Settles Claims
DALLAS - First RepublicBank Corp. said it has settled bankruptcy claims with the Federal Deposit Insurance Corp. and expects to emerge this month from Chapter 11 protection.
First RepublicBank is the holding company for banks seized by the FDIC in 1988 and transferred to an NCNB Corp. subsidiary.
The settlement agreement reached with the FDIC late last year was completed July 2, resulting in the transfer of about $144 million to First RepublicBank, the company said. The completion also resulted in a general release of claims and a dismissal of the appeal and all pending litigation.
Subsequently, the Bankruptcy Court approved modifications to the Chapter 11 reorganization plans designed to simplify the structure of the plans. But it did not change the economic allocations, the bank said.
About $290 million will be distributed to First RepublicBank creditors and more than $177 million to creditors of a subsidiary, IFRB Corp.
The timing and amounts of initial cash distributions are subject to the settlement of claims of former officers. The settlements are expected to be completed in time to meet a July 15 initial distribution deadline.