A Chicago trade organization is honoring the team that helped AmericanWest Bank go from likely failure to an acquirer.
The Turnaround Management Association will give lawyers from Morrison & Foerster LLP, Skadden, Arps, Slate, Meagher & Flom LLP, Davis Wright Tremaine LLP and Foster Pepper PLLC as well as an investment banker from Sandler O'Neill & Partners LP its transaction of the year award in the midsize company category for their work on the bankruptcy of AmericanWest Bancorp in Spokane, Wash. The U.S. Bankruptcy Court for the Eastern District of Washington late last year oversaw a sale of the then-$1.5 billion-asset AmericanWest Bank to SKBHC Holdings for $6.5 million.
That bankruptcy has been lauded as one of the most creative recapitalizations of the financial crisis and a model for other banks that have strong franchises but are struggling with nonperforming loans and too much debt at the holding company level.
"This transaction is a real success story in the wake of hundreds of community bank failures," Alexandra Steinberg Barrage, one of the six Morrison & Foerster attorneys being honored, said in an interview. "To the best of our knowledge, this type of transaction had never really succeeded before, so this honor is tremendous, and we hope we can make it work with other banks."
Though the honor is going to the advisors, for whom the association serves, Barrage added that much of the deal's success can be attributed to AmericanWest's former chief executive Patrick Rusnak. Rusnak is now the chief financial officer of Sterling Financial Corp., also in Spokane.
"If you have to give credit to one person, it is Pat Rusnak," Barrage said. "He is the person most deserving of the recognition. Without his leadership, we could not have saved AmericanWest Bank."
Following the bankruptcy sale, SKBHC immediately infused the significantly undercapitalized bank with $185 million. So far this year the rejuvenated bank has acquired two banks and has one acquisition pending.
Rusnak said in a brief interview that he was happy the team of advisors was being honored for its work. He urged community banks to seek advisors with cachet when exploring creative ways to stay afloat.
"This is not a time to have advisors on training wheels. You need capable, credible and experienced individuals because they have to demonstrate to the regulators that it can work," Rusnak said.
The winners will be recognized at the trade group's annual convention later this month in San Diego.
In addition to Barrage, the award is being given to Larry Engel, Vincent J. Novak, Dina Kushner, Jonathan T. Keen and Kristin A. Hiensch of Morrison & Foerster; Van C. Durrer 2nd and Kimberly D. Jaimez at Skadden Arps; Ragan Powers at Davis Wright Tremaine LLP; Dillon Jackson at Foster Pepper PLLC; and Al Glowasky, a managing director at Sandler O'Neill.
