DALLAS - The U.S. Court of Appeals for the Fifth Circuit delayed reorganization plans for MCorp and two units, MCorp Financial and MCorp Management, pending a hearing on an appeal filed by some creditors.
MCorp said the appeal is expected to be heard by the court the week of Jan. 3.
As reported, a federal bankruptcy judge in Houston confirmed the plans for the company and its two units to pay out about $400 million in assets from the banking company's estate.
Under terms of the plan, senior bondholders would recover about 90% of their total claims depending on how much cash is recovered by liquidating assets. Holders of subordinated bonds were projected to recover $6.2 million of their $135 million in claims.
The Federal Deposit Insurance Corp., which seized 20 of MCorp's banks in 1989, would receive $33 million under the plan, whose completion had been scheduled for this week, MCorp said.