A judge has approved Anchor Bancorp Wisconsin's (ACBW) plan to file for bankruptcy.
A U.S. Bankruptcy Court judge approved Anchor's Chapter 11 plan on Friday, the Madison, Wis., company announced. The plan, announced last month, would allow Anchor to repay $183 million in debt at a 73% discount and would free it from an obligation to repay $139 million in capital it received from the Troubled Asset Relief Program.
The $2.3 billion-asset Anchor has agreed to sell $175 million in stock to institutional and private investors in a bid to recapitalize its AnchorBank. The capital raise requires regulatory approval.
Anchor's bankruptcy filing came after Associated Banc-Corp (ASBC), one of its creditors, refused to approve a previous recapitalization plan, according to legal documents. Associated later denied responsibility for Anchor's bankruptcy.