I want to apologize for bringing stuck_with_a_loser to this board. I was looking at another Michigan bank that he posts positively about and made a comment he didn't like.
IBCP independent bank - they skipped a tarp dividend payment defaulting on their govt bailout obligations and he thinks they are in good shape because they "have a lot of cash on hand" I simply pointed it out that that happens when you don't pay your bills.
So he will probably bash here for a while. I have noticed he ran right into the tigers den and got blasted by Kabtb and Rig LOL. Best of luck to him.
You are just one shorts who came to that board. If you stick with facts and stop the shorty, BS games, you are better off.
This is not a default at all. This is a process of going through the conversion process.
Here is what was announced in the 3rd quarter report.
The terms of the Debentures and trust indentures (the "Indentures") allow for the Company to defer payment of interest on the Debt Securities at any time or from time to time for up to 20 consecutive quarters provided no event of default (as defined in the Indentures) has occurred and is continuing. The Company is not in default with respect to the Indentures, and the deferral of interest does not constitute an event of default under the Indentures. While the Company defers the payment of interest, it will continue to accrue the interest expense owed at the applicable interest rate. Upon the expiration of the deferral, all accrued and unpaid interest is due and payable.
Be careful when you spread a little sh!t on another board. You just attracts sh!t to your own board.
That view that it is simply part of a conversion, in a way, may be so on the nonTARP preferred though I really doubt amdiz or others mistated it. The simple truth however is that some conservative investors, including myself, simply treat such things as defaults or close to defaults, and stay away until things are resolved. Rarely does the PPS just jump higher afterwards anyway, so it tends to avoid losses if the company fails, or leads to lower entry points if the company survives.
The other issue is that they failed to pay their TARP interest which IMHO was very likely to have been a dumb mistake. That puts them on news article lists with some headings calling them deadbeat banks, it is not even the thing you want to be seen playing games for short term cash issues on. It may have also cost them a lot in lost market cap, and it certainly tends to increase the risk of FDIC intervention.
While money might be made in both banks, it looks like CRBC would never let itself get as low in capital as IBCP has, and it would never do things like fail to pay TARP interest thinking it was worth it just to beef up their short term liquidity.
Looks to me like it was you guys that came over here bashing, certainly you were pumping IBCP. FWIW; I really doubt amdiz is a short unless he said he was.