Financial Holdings Inc., the owner of American Founders Bank Inc., filed a Chapter 11 petition on June 16 in Lexington, Ky., after arranging a sale to one of the existing owners (In re Financial Holdings Inc., Bankr. E.D. Ky., 15-51187, petition filed 6/16/15).
The bank has five branches in Lexington and Louisville. It has been operating since 2007 under cease-and-desist orders that limited its operations, including prohibiting the payment of dividends.
Debt of the holding company includes a $14.4 million loan secured by stock of the non-bankrupt bank. William Butler, a 15 percent shareholder of the holding ...
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