OTS Nixes Request by United Western

The Office of Thrift Supervision has denied United Western Bancorp Inc.'s request to make payments on its line of credit with JPMorgan Chase & Co.

The $2.42 billion-asset company disclosed the denial of its request for a nonobjection to the payments in a Securities and Exchange Commission filing Tuesday. United Western, of Denver, was seeking the approval because such payments are restricted by a cease-and-desist order its thrift entered into with the OTS in late June.

An April forbearance agreement for the line of credit extended the maturity date for the $16.25 million balance to Sept. 30, if United Western made monthly payments of $500,000 in the interim. It, however, could not make payments without OTS approval. United Western said it is negotiating with the lender.

For reprint and licensing requests for this article, click here.
Community banking Colorado Colorado
MORE FROM AMERICAN BANKER