Magazine article American Banker

Orbanco Stockholders to Get $16-$18 a Share in Liquidation

Magazine article American Banker

Orbanco Stockholders to Get $16-$18 a Share in Liquidation

Article excerpt

NEW YORK -- The Orbanco Financial Services Corp. estimates that stockholders will receive $16 to $18 for each of their common shares when the firm is liquidated.

The Portland, Ore., company also reported Monday a $30.5 million net loss in the second quarter, which it said was "primarily due to the provision for estimated loss on liquidation."

In a statement, Orbanco estimated shareholders would ultimately receive cash distributions of abour $16 to $18 per common share. But it warned shareholders that the liquidation payments, payable over the period of liquidation, "are based on assumptions which might change materially over the liquidation period."

The company added, "Actual distributions may be higher or lower than the estimate, and the variation may be material."

Orb anco has previously announced agreements to sell Northwest Acceptance Corp. to PacificCorp, a dviersified utility company. It has also agreed to sell the Oregon Bank, its lead bank, American Data Co., Orbanco Real Estate Services Co., and Orbanco Securities to San Francisco's BankAmerica Corp. The transactions are subject to approval by shareholders and regulatory agencies.

Orbanco shareholders are scheduled to vote on the plan of liquidation and the sale of Orbanco's subsidiaries at a special meeting set for Sept. 11 for shareholders of record Aug. 9.

The Portland company expects the Northwest Acceptance sale to close in mid-September, at which time, it said, the net cash proceeds will be applied to reducing its bank debt. …

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