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Thursday, June 04, 2009

Report: Investors Seeking to Buy Assets of Corus

by Calculated Risk on 6/04/2009 09:53:00 AM

From Bloomberg: Corus Bankshares Said to Draw Interest From Colony, Related

... Colony Capital LLC and ... Related Cos. have indicated they may seek to buy the assets of Corus Bankshares Inc. ...

Corus ... hired Bank of America Corp. to solicit capital this month or sell the entire firm to avoid being shuttered ... Investors may offer to buy the lender while it’s still in business or to purchase its assets out of receivership, said the people, who requested anonymity because the process isn’t public.
Federal regulators found that Corus was undercapitalized and may place the bank into receivership if it fails to satisfy capital requirements, according to the May filing. Its nonperforming assets more than quadrupled to $2.5 billion as of March 31, the filing showed. It had reserves of $338.6 million and reported a first-quarter loss of $285 million.
emphasis added
From the Corus 10-Q in May:
In its report dated April 6, 2009, our independent registered public accounting firm stated that our net losses raise substantial doubts about our ability to continue as a going concern. Our ability to continue as a going concern is in doubt as a result of the continued deterioration of our loan portfolio and is subject to our ability to service our existing loans in a manner that will return the Company to profitability or, in the alternative, identify and consummate a strategic transaction, including the potential sale of the Company.
The Bank may be subject to a federal conservatorship or receivership if it cannot comply with the OCC Order, the Prompt Corrective Action requirements, or if its condition continues to deteriorate.
This is similar to BankUnited, except we don't have a date. Something to watch for tomorrow.