Daily News: January 16, 2015

Carl Marks Advises American Bancorporation to Gain Sale Approval

Carl Marks Securities acted as exclusive financial advisor to American Bancorporation in the sale of substantially all of its assets pursuant to §363 of the U.S. Bankruptcy Code. The sale of the assets of the Minnesota-based bank holding company is expected to generate net proceeds of approximately $22 million.

Engaged by the board of directors, Carl Marks led the transaction for American Bancorporation. After an initial marketing period that involved a substantial number of parties, Carl Marks helped structure a unique stalking horse agreement in which Deerwood Bank would purchase either the bank subsidiary in a stand-alone transaction, or the bank and its wholly-owned mortgage subsidiary combined, at the discretion of American Bancorporation. This unique and flexible structure allowed for a highly competitive auction in which the bank and the mortgage subsidiary were ultimately agreed to be sold to two separate buyers.

“We are very pleased to have obtained a sale order approval from the bankruptcy judge for this transaction,” said Evan Tomaskovic, CEO of Carl Marks Securities and a partner at Carl Marks Advisors. “We worked closely with the Board of American Bancorporation in a thorough process that yielded a net increase in purchase price to the estate almost 40% above the initial stalking horse value.”