Mercantile Bancorp declares bankruptcy; sells assets

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.

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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.