Investors worry about Front Range bank sale
DENVER — The sale of struggling Mile High Banks on the Front Rage could leave investors in the bank’s holding company high and dry.
Big Sandy Holding Co., the Longmont-based bank’s owner, filed for Chapter 11 bankruptcy last month after announcing it had signed a deal to sell to a Texas banking group for $5.5 million.
According to the Denver Post, holders of about $44 million in unsecured debts are worried that they’ll end up losing their investments.
The sale can be approved only after a public auction, scheduled to close Dec. 6.
Another buyer would have to beat the amount offered by El Paso-based Strategic Growth Bancorp. The buyers said they will provide as much as $90 million in additional capital. They have already loaned $1 million in working capital.