GLENDALE, Calif. - At a special meeting of Glenfed Inc., shareholders narrowly approved a reorganization plan aimed at recapitalizing the company's Glendale Federal Bank unit, fending off a federal takeover.
The company said on Thursday that 52.8% of its shares were voted in favor of the plan and 14.4% were voted against. Separately, enough debtholders and preferred stockholders accepted the company's offer - to exchange their holdings for newly issued common stock - to allow the reorganization to proceed.
Meanwhile, a U.S. appeals court has granted Glendale Federal's request for a rehearing on an earlier decision against the California thrift in its lawsuit over treatment of acquisition-related goodwill.
The latest ruling means the entire U.S. Court of Appeals for the Federal Circuit will review a May 1993 decision by three appellate judges that reversed a lower-court order in favor of Glendale Federal.
Glendale, a unit of Glenfed Inc., sued the federal government, claiming it had reneged on an agreement to allow goodwill from government-sponsored acquisitions to be counted as regulatory capital.