Posted Friday, August 30, 2013 --- 5:12 p.m.
MADISON, Wis. (AP) -- The parent company of Madison-based AnchorBank says a federal bankruptcy judge has accepted its reorganization plan.
Anchor BanCorp Wisconsin filed for Chapter 11 reorganization earlier this month, asking a judge to clear the way for a deal that would erase its debts and raise $175 million in new investment capital.
A company statement said the judge approved its plan at a Friday hearing. It says some conditions must still be met, including regulatory approvals.
AnchorBank President and Chief Executive Officer Chris Bauer says the reorganization only affects the parent company, and AnchorBank will continue to operate as usual.
Anchor BanCorp Wisconsin filed for bankruptcy after rival Associated Bank rejected a deal to settle a $116 million loan made by it and two other banks in 2008.
Copyright 2013: Associated Press