The Bankruptcy Law Firm, Prof. Corp

Call Today 1-310-559-9224

Free First Consult to Tell You if We Can Help You ♦ Fair Prices

The Bankruptcy Law Firm, Prof. Corp. - Owned and operated by Attorney Kathleen P. March - Former U.S. Bankruptcy Judge, Los Angeles, California

Home NetBank Files for Bankruptcy

NetBank Files for Bankruptcy After Regulators Take Over Unit

October 1, 2007
Credit and Collection News

Sept. 29 (Bloomberg) -- The parent of NetBank, a pioneer in Internet banking, filed for bankruptcy protection after the savings-and-loan became the first in three years to fail.

The filing in U.S. Bankruptcy Court by NetBank Inc. in Jacksonville, Florida listed assets of $87.2 million and debt totaling $42.4 million.

The bankrupt holding company plans to sell real estate it owns in Columbia, South Carolina and its captive reinsurance subsidiary M.G. Reinsurance Inc. The Chapter 11 filing occurred after a sale of the savings-and-loan fell through and it was taken over by the Federal Deposit Insurance Corp. following a shutdown of the unit by U.S. regulators.

Federal law prohibits the savings-and-loan subsidiary from filing for bankruptcy protection from creditors like its parent. Federally chartered banks cannot be reorganized and must be liquidated by the FDIC.

NetBank was founded in 1996 and went public in 1997. The bank had 286,000 customers and $4.8 billion in assets in 2005 before online competition from national and regional banks eroded the business.

The bank's failure this year was the result of margin compression from an inverted yield curve, fewer mortgage originations, and demands to repurchase delinquent loans, according to a bankruptcy court filing.

As part of the FDIC takeover, ING Bank announced it is assuming $1.4 billion of the failed bank's deposits and 104,000 of its customers while EverBank Inc. acquired $700 million of NetBank's mortgage assets.

The savings-and-loan subsidiary had $2.5 billion in assets and $2.3 billion in total deposits as of June 30, according to the FDIC.

NetBank said in filings with the Securities and Exchange Commission that its executive offices are in Alphafretta, Georgia while the bankruptcy petition listed Jacksonville as the main office.

NetBank's stock closed Sept. 28 at 7 cents a share, down 1 cent in over-the-counter trading.

The case is In re NetBank Inc., No. 07-04295, U.S. Bankruptcy Court, Middle District Florida (Jacksonville).

The Bankruptcy Law Firm, PC represents individual and small business debtors in filing bankruptcy in each of the following counties which comprise the central district of California bankruptcy court: Counties of Los Angeles, Orange, Ventura, San Bernardino, Riverside, Santa Barbara, and San Luis Obispo (South ½). Contact us at (310) 559-9224 or by emailing to: KMARCH@BKYLAWFIRM.COM for a free first consult. We look forward to helping you.

:: Back to Articles

Free First Consult to Tell You if We Can Help You

Phone Us at (310) 559-9224


The Bankruptcy Law Firm

10524 W. Pico Blvd.
Suite 212
Los Angeles, CA 90064

Phone: (310) 559-9224
Fax: (310) 559-9133

Email:
kmarch@bkylawfirm.com

Website:
www.bkylawfirm.com

You can contract with The Bankruptcy Law Firm, PC, with confidence, because The Bankruptcy Law Firm, PC is a member of the Better Business Bureau, and has met all requirements for being certified by the Better Business Bureau as a reliable business. Click on the BBB logo above to confirm The Bankruptcy Law Firm's certification by the BBB.

Member of National Association of Consumer Bankruptcy Attorneys

Los Angeles Bankruptcy Attorney Disclaimer: The information on los angeles bankruptcy law, filing bankruptcy, and other Los Angeles Bankruptcy information presented at this site does not constitute legal advice and does not create any attorney-client relationship or contract of any kind with the Bankruptcy Law Firm, PC or bankruptcy lawyer Kathleen P. March, Esq. The Bankruptcy Law Firm, PC uses a written contract for each client and will only be representing you if you and the law firm sign a written legal representation contract and you pay law firm for the bankruptcy legal services it performs for you. Information on this law firm web site is provided for informational and educational purposes only. Information herein is not offered as, and does not constitute, legal advice. You should never make legal hiring decisions solely upon web pages, brochures, advertising or other promotional materials. Please contact a Los Angeles bankruptcy lawyer at our bankruptcy los angeles law firm for your free first consult to find out whether our law firm can represent you.

This web site might be characterized as an advertisement under California's State Bar Rules and is not intended to solicit clients for matters outside of the State of California. Always seek the advice of an attorney from your own jurisdiction before relying on information from this site or any web site.

This Bankruptcy Law Firm is a federally designated DEBT RELIEF AGENCY as defined in the 2005 amendments to the US Bankruptcy Code. This law firm provides legal advice regarding the pros and cons of filing bankruptcy and represents people and small businesses in filing for bankruptcy relief under the US Bankruptcy Code. Debt Relief Agency Notice.

Kathleen P. March - Los Angeles Bankruptcy Lawyer and Former Los Angeles Bankruptcy Judge - claims the copyright (2002-2017) to the content of all pages on www.bkylawfirm.com. All rights reserved.