Mercantile Bancorp declares bankruptcy; sells assets
Fri, 28 Jun 2013 08:08:09 GMT —
A Quincy-based bank will have a new owner in the coming year.
According to paperwork filed with the U.S. Bankruptcy Court Thursday, Mercantile Bancorp, Inc. was forced to seek bankruptcy protection from creditors as a result of a decline in the financial markets during 2007 and 2008, foreclosure rates, delinquency rates and default rates.
Chapter 11 documents list debt of more than $50 million and assets of less than $50 million dollars.
According to the Bloomberg report, Mercantile has reached an agreement to sell virtually all its assets to United Community Bancorp Inc. for about $22.3 million.
Read more from Business Week.
for a list of Mercantil Bancorp, Inc. creditors.
The offer from United Community Bancorp will be subject to court approval and competitive bidding at a proposed auction.