-
Complaint also seeks to bar Alan Levan, the company's chairman and CEO, from serving as an officer or director of any public company.
January 18
BankAtlantic Bancorp Chairman Alan Levan says his company would likely be "out of business" within two years if certain investors succeed in blocking the sale of BankAtlantic's thrift to BB&T Corp.
Testifying in Delaware Chancery Court last week, Levan, who is also BankAtlantic's chief executive, said that in two years the $3.7 billion-asset company could no longer defer payments on trust-preferred securities and thus would be required to pony up $76 million in accrued interest. Levan said that at that point the company would likely be declared in default because it would not have the capital on hand to settle the debt, according to an account of his testimony reported by the South Florida Business Journal Thursday.
"We have to find a buyer and we have to take care of the [trust-preferred] problem, because in two years we are out of business," Levan said.
BankAtlantic announced in November that it is selling its branch network and the bulk of its performing assets to BB&T for about $300 million. BankAtlantic would retain about $624 million of troubled assets and reinvent itself as a specialty finance company.
Investors in its trust-preferred securities, however, have objected to the terms of the deal, which would leave them holding a
In his testimony, Levan said that he has tried to sell the company to a buyer that would assume more than $300 million in trust-preferred debt, but so far has found no takers.
A judge heard arguments in the case last week and is expected to issue a ruling by March 1.