The Phoenix Companies Updates on Status of TARP Application
April 25, 2009
Apr 24, 2009 (Close-Up Media via COMTEX) -- The Phoenix Companies, Inc. announced an update to the status of its application to the U.S. Treasury Department's Troubled Assets Relief Program (TARP).
In conjunction with its application, Phoenix had previously been approved as a savings and loan holding company and had entered into an agreement to acquire American Sterling Bank, a federal stock form savings bank headquartered in Sugar Creek, Missouri, from American Sterling Corp., a California corporation and the sole stockholder of American Sterling Bank. Phoenix's acquisition of American Sterling Bank had been conditioned upon, among other things, receipt of proceeds under TARP in an amount and on terms acceptable to Phoenix.
Phoenix was informed that on April 17, the Federal Deposit Insurance Corp. ("FDIC") was appointed as a receiver of American Sterling Bank and that Metcalf Bank of Lee's Summit, Missouri, would assume the bank's deposits and buy its assets from the FDIC in connection with the receivership. The appointment of the FDIC as receiver effectively terminates the acquisition agreement between Phoenix and American Sterling Corp. Due to the appointment of the FDIC as receiver, American Sterling Corp. would not be able to satisfy certain of its closing conditions under the acquisition agreement.
In light of these developments, Phoenix intends to withdraw its application to participate in TARP. Phoenix had pursued TARP for potential additional financial flexibility in this difficult market environment but remains well capitalized.
The Phoenix Companies, Inc. helps its customers find straightforward solutions to often highly complex personal financial and business planning needs through life insurance and annuities. Phoenix's products are available through a wide variety of third-party financial professionals and intermediaries, supported by the company's wholesalers and financial planning specialists. In 2008, Phoenix had annual revenues of $2.0 billion and total assets of $25.8 billion, the company noted in a release.
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