Central Illinois Bank Parent Declares Bankruptcy
The parent company of Central Illinois Bank has filed for Chapter 11 bankruptcy with hopes of reorganizing with a strategic partner in 45 to 60 days.
But CIB Bancshares Chairman and CEO John Hickey Junior says the filing will have no impact on the bank and its customers. He says Central Illinois Bank has the capital for it to continue doing business with clients, and is separate from the petition that the holding company filed Tuesday night in federal court in Milwaukee.
Hickey says trust-preferred securities holders had to agree to a pre-packaged reorganization plan that was similar to what auto makers GM and Chrysler went through:
"You get the pre-approval from the creditors in advance, and that allows you to go in on a pre-package basis and come out and emerge very quickly," Hickey said. "We've continued to keep the regulators all informed in terms of where we are in the process, and so we've kept them up to date."
Hickey says employees of the parent company are excited about prospects for the company's future. Discussions with potential partners are expected start once the reorganization is complete.
Central Illinois Bank has 12 branches in the region, including locations in Champaign, Urbana, Danville and Decatur. CIB Marine Bancshares also has offices in Wisconsin, Indiana, and Arizona.