Business

Nov 14, 2012 11:19 AM by Lauren Molenburg

Investors worry about Colorado bank sale

DENVER (AP) - The sale of struggling Mile High Banks could leave investors in the bank's holding company high and dry.

Big Sandy Holding Co., the Longmont-based bank's owner, filed for Chapter 11 bankruptcy last month after announcing it had signed a deal to sell to a Texas banking group for $5.5 million.

According to the Denver Post (http://tinyurl.com/c8et9pc), holders of about $44 million in unsecured debts are worried that they'll end up losing their investments.

The sale can be approved only after a public auction, scheduled to close Dec. 6.

Another buyer would have to beat the amount offered by El Paso-based Strategic Growth Bancorp. The buyers said they will provide as much as $90 million in additional capital. They have already loaned $1 million in working capital.
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Information from: The Denver Post, http://www.denverpost.com

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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