The Florida bank parent company, Sterling Bancgroup, filed for Chapter 7 bankruptcy earlier this month at a U.S. Bankruptcy Court in Fort Lauderdale, Florida.
Florida-based Sterling Bank itself closed down eight months ago, and the parent company is said to have filed for Chapter 7 in an attempt to slowly close down all of its operations. According to the bankruptcy filing, Sterling Bancgroup has between $1 million and $10 million in debt and approximately $100,000 to $500,000 in assets. A list of creditors was not made public during the filing.
After Sterling Bank closed eight months ago, the bank’s $408 million in assets and deposits were given to Iberiabank in July. This failure was said to cost the Federal Deposit Insurance Corporation an estimated $45.5 million, and it is unknown whether the FDIC will be a creditor in Sterling Bancgroup’s bankruptcy case.
Of course this business bankruptcy is making headlines with this filing, especially due to the fact that the parent company was a holding company for a bank. However, it should be noted that Sterling Bancgroup is just one of the many Florida companies that has found itself unable to financially keep up in a tough economy.
Sterling Bancgroup chose to file for Chapter 7 bankruptcy, which is one option for companies that have a sizeable amount of debt. Under this filing, the company will have to liquidate all qualified assets in order to pay back creditors. Once this is done the company will cease to exist, and its debt will also be gone.
Source: South Florida Business Journal, “Parent of failed Sterling Bank files Chapter 7,” Brian Bandell, 7 March 2011