The parent company of Mulberry’s Allied Bank marked its second year in bankruptcy last month.
More than six months have come and gone since anything new has hit the court docket in the Chapter 7 bankruptcy case of Acme Holding Co.
Ray Fulmer, court-appointed trustee, couldn’t be reached for comment on the case and provide an update on his efforts to sell Acme’s Allied bank stock.
“The trustee has been running different paths with different folks who have differing levels of interest in acquiring,” said Garland Binns Jr. of Little Rock’s Dover & Dixon law firm, which represents Chambers Bank of Danville.
“We want to give him an opportunity to sell the bank. Maybe a sale can pay off a large part or all of the debt.”
The Allied bank stock is in the physical possession of Acme’s lead creditor, Chambers Bank, and secures two delinquent loans totaling more than $4.5 million.
C Holdings LLC, an affiliate of Chambers Bank, also holds a $1.4 million delinquent loan claim against Acme.
Mixed in with Acme’s pledge of Allied stock are the personal guarantees of Lex and Ellen Golden, whose Little Rock family maintains operational control of the bank.
A third Acme creditor, Hildene Asset Management, represents the holders of trust-preferred securities with a claim of more than $3 million.
During the past six months, the financial fortunes of Acme’s prime asset have continued to spiral downward.
Since Sept. 30, Allied Bank has lost more than $2.5 million as its equity capital deteriorated below $5 million and total assets declined to $72 million.
Lex and Alex Golden, Allied’s father-son executive team, couldn’t shrink Allied’s asset base fast enough to restore regulatory-mandated balance.
They also were unable to stop the losses from bad loans that have battered Allied for more than five years and put the bank under regulatory supervision.
In 2010, the bank reported year-end high-water marks for total assets ($185 million) and equity capital ($18 million).
Acme’s Chapter 11 reorganization was converted to Chapter 7 liquidation last year after the Goldens failed to convince U.S. Bankruptcy Court Judge Ben Barry a turnaround was possible.
With no dividends from Allied, Acme could not service its debt.
Allied Bank
The bank’s parent company, Acme Holding, entered bankruptcy court on April 29, 2014. Acme’s prime asset is ownership of Allied Bank.
| Total Assets | Equity Capital | Net Income | ||
| 2014 | 2Q | $122,754 | $8,586 | -$266 |
| 3Q | $119,594 | $8,260 | -$72 | |
| 4Q | $111,538 | $8,096 | -$492 | |
| 2015 | 1Q | $107,187 | $8,097 | $30 |
| 2Q | $98,602 | $7,787 | -$236 | |
| 3Q | $82,581 | $7,529 | -$266 | |
| 4Q | $79,327 | $5,789 | -$1,722 | |
| 2016 | 1Q | $72,378 | $4,973 | -$834 |
Source: Federal Deposit Insurance Corp. All dollars in thousands