Amcore Financial files plan of liquidation, disclosure statement

By Caroline Salls

Pittsburgh, Aug. 26 - Amcore Financial, Inc. filed its plan of liquidation and related disclosure statement on Wednesday with the U.S. Bankruptcy Court for the Northern District of Illinois.

As previously reported, the company's bank subsidiary was closed by the Federal Deposit Insurance Corp. in April and subsequently sold.

As a result, Amcore Financial said it is no longer a bank holding company. Instead, it is a non-operating company looking to liquidate its remaining assets.

The assets will be liquidated under the plan. The proceeds and other cash will be transferred to a liquidating trust for distribution to creditors.

Treatment of creditors will include:

• Holders of secured claims, non-tax priority claims will be paid in full in cash;

• The FDIC will receive $550,000 in cash, all state income tax receivables, estimated at $300,000, and all insurance refund proceeds;

• Holders of general unsecured claims will receive a share of liquidation trust interests; and

• Holders of subordinated claims will receive no distribution.

Amcore was a Rockford, Ill., holding company for Amcore Bank, NA. The company filed for bankruptcy on Aug. 19, and the Chapter 11 case number is 10-37144.

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