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New capital for Anchor BanCorp

MADISON, Wis. (AP) -- A group of investors is pumping new money into the struggling Anchor BanCorp Wisconsin.

The institutional and private investors from across the country have agreed to provide $175 million in new capital for Anchor BanCorp, the parent of the nearly century-old AnchorBank of Madison.

Anchor BanCorp has filed for Chapter 11 reorganization in the Western District of U.S. Bankruptcy Court as part of the arrangement. Bank president Chris Bauer says shareholders will lose their stake, as Anchor's current stock will no longer exist after the bankruptcy is approved by the court. That process could take 45 to 90 days.

Bauer says the new capital will give AnchorBank the opportunity to become a significant lender once again.

Anchor BanCorp hasn't posted a profit in the last five fiscal years.