Royal Financial in Chicago has agreed to sell $29.1 million in distressed assets, a deal mandated by a bankruptcy judge as part of the company's acquisition of PNA Bank.
Royal agreed to sell the assets to a New York asset management firm that it did not identify in a news release. The $29.1 million of distressed assets includes $25.5 million in assets owned by PNA Bank. As part of its deal to acquire PNA out of bankruptcy, a federal judge in December required Royal to sell PNA's distressed assets.
Royal did not indicate whether the sale of PNA Bank's $25.5 million in distressed assets has been approved by the federal bankruptcy judge, or whether the judge must still give final approval before the sale can close. Royal said the sale still requires regulatory approval. Leonard Szwajkowski, Royal's chief executive, did not immediately return a call seeking comment.
The $29.1 million sale also includes $3.6 million in distressed and other assets that Royal Financial owns.
FTN Financial Capital Assets was financial adviser to Royal Financial on the sale. Vedder Price was its legal counsel.