PROVIDENCE, R.I. - Old Stone Corp. said it plans to sell nearly $560 million of commercial real estate assets, exchange preferred series B shares for common shares, and raise about $60 million in capital.
The Rhode Island thrift company also announced third-quarter earnings of $0.3 million, compared with a restated loss of $101.8 million a year earlier.
James V. Rosati, president and chief executive officer, said a successful completion of the proposed transactions "will preserve Old Stone as a viable, community-based financial institution in compliance with all fully phased-in capital requirements."
Of the commercial real estate assets, Old Stone said it has a letter of intent to sell $170 million of nonperforming loans and foreclosed properties to a partnership being formed by Liberty Real Estate Group Inc., a subsidiary of Liberty Financial Companies.
Liberty and BT Securities Corp., a subsidiary of Bankers Trust New York Corp., will serve as Old Stone's financial advisors in the sale of an additional $390 million of commercial real estate assets, principally performing loans.