Oct 3 - Capitol Bancorp Limited, Lansing, Mich., (OTCQB: CBCRQ) has entered into a securities purchase agreement with VS CB Stock Acquisition LLC for the sale of $35 million of class B common stock and $15 million of series A preferred stock, in each case contingent on the corporation's emergence from bankruptcy and subject to the terms and conditions contained in the securities purchase agreement.
Capitol's chairman and CEO, Joseph D. Reid, said, "This transaction represents a significant step toward the completion of our plan of reorganization."
Capitol also announced its entry into an asset purchase agreement with VS CB Asset Acquisition LLC pursuant to which Capitol will sell approximately $207 million of nonperforming loans, which is also contingent on emergence from bankruptcy and subject to the terms and conditions contained in the asset purchase agreement, and represents substantially all of the nonperforming loans of Capitol's affiliate banks.
About Capitol Bancorp Limited
Capitol Bancorp Limited, which was founded in 1988, is a community banking company with a network of separately chartered banks in 10 states and executive offices in Lansing, Mich.