Temecula... is this one for your timetable? (Investment failed)
finance.yahoo.com
July-1 Temecula Valley Bancorp Provides Update on Proposed Recapitalization Plan
TEMECULA, Calif.--(BUSINESS WIRE)--Temecula Valley Bancorp Inc. (NASDAQ: TMCV - News) today announced that it has been advised that Bancroft Capital, LLC and certain institutional investors, including Orient Property Group LLC, will not proceed with their proposed equity investment in Temecula Valley Bancorp or Temecula Valley Bank as detailed in the non-binding Letter of Intent the companies entered into and announced on June 1, 2009.
Frank Basirico, Chief Executive Officer of Temecula Valley Bancorp, said, “We’re clearly disappointed that this transaction will not be moving forward. Nonetheless, we are continuing to execute on our regulatory action plan and making progress on our strategy to deleverage our balance sheet and return to our roots as a community-focused bank. Looking ahead, we will continue to work in concert with Stifel, Nicolaus & Co. in the pursuit of an acceptable capital solution.”
Douglas McDonald, Founder and President of Bancroft Capital, said, “We worked tirelessly with the management team at Temecula Valley Bancorp to create a structure that would allow a competitive rate of return for our investors while, at the same time, preserving value for existing shareholders. However, given the macro-economic factors at play and the continued deterioration in market fundamentals, we regrettably could not structure a feasible solution given the challenges that presented themselves.”
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2-Jul-2009
Other Events
Item 8.01 - Other Events.
On June 1, 2009, Temecula Valley Bancorp Inc., along with its wholly owned bank subsidiary, Temecula Valley Bank, announced that it had entered into a non-binding letter of intent ("LOI") with Bancroft Capital, LLC. Pursuant to the terms of the LOI, certain institutional investors, including Orient Property Group LLC, would consider, subject to the satisfaction of multiple conditions, including the completion of due diligence, entering into a definitive agreement that would call for an aggregate investment of up to $210 million. As discussed in the attached press release, on June 29, 2009, Bancroft Capital advised Temecula Valley Bancorp that it would not proceed toward the execution of a definitive agreement with Temecula Valley Bancorp or Temecula Valley Bank, principally because it was likely that the investors' internal rate of return objectives could not be realized for an extended period of time. |
