Corus Bankshares gets additional 60-days to negotiate plan details

By Lisa Kerner

Charlotte, N.C., March 31 - Corus Bankshares Inc.'s request for a second extension to its exclusive period to file a plan of reorganization was granted by the U.S. Bankruptcy Court for the Northern District of Illinois on Thursday, according to an attorney familiar with the case.

The court extended the period to May 30 from April 1.

Corus requested the extension so it would have more time to agree on consensual modifications to it plan with Tricadia Capital Management, LLC, its affiliates and the official committee of unsecured creditors.

As previously reported, Tricadia purchased $109 million of the debtors' trust originated preferred securities (TOPrS). A smaller block of TOPrS was purchased by an independent fund that specializes in distressed debt.

As a result of its investment, Tricadia requested some minor modifications to the plan to protect its investment. The other TOPrS holders may support the plan with the modifications, according to a prior court filing.

Thirteen holders of the TOPrS, including Tricadia, have voted to reject the plan in its current form.

Corus said the proposed changes do not affect the structure of the plan or the recoveries of any of the debtor's stakeholders.

Tricadia's proposed changes primarily address the identity of, and the selection process for, the plan administrator and the plan committee.

Corus, a Chicago-based bank holding company, filed for bankruptcy on June 15, 2010. Its Chapter 11 case number is 10-26881.

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