First BanCorp, the bank holding company for FirstBank Puerto Rico, filed a form 8-K that disclosed that the U.S. Bankruptcy Court for the Southern District of New York has denied the bank’s motion for summary judgment filed in connection with its claim to recover certain assets posted as collateral with Lehman Brothers.
This matter relates to the claim that the bank filed against Barclays Capital in the bank’s attempt to recover the securities (or the cash equivalence thereof) that were posted as collateral in connection with certain interest hedge agreements executed with a Lehman affiliate. Since the second quarter of 2009, the corporation classified the pledged securities as a non-performing asset with a book value of $64.5 million.
Because of the bankruptcy court’s May 10, 2013 decision, the corporation has determined that it is probable that the asset has been impaired and will recognize a non-cash charge associated with the impairment of approximately $64.5 million, plus $2.1 million in accrued interest, during the second quarter of 2013 to write-off the carrying value of the pledged securities. The Bank intends to appeal the court’s decision denying its motion for summary judgment.
Previously on abfjournal.com: