IN RE BANKATLANTIC BANCORP, INC. LITIGATION

C.A. No. 7068-VCL.

39 A.3d 824 (2012)

In re BANKATLANTIC BANCORP, INC. LITIGATION

Supreme Court of Delaware.

Decided: February 27, 2012.


Attorney(s) appearing for the Case

Kenneth J. Nachbar , Megan Ward Cascio , Shannon E. German , Morris, Nichols, Arsht & Tunnell LLP, Wilmington, Delaware; Jonathan E. Pickhardt , Richard I. Werder, Jr. , Rex Lee , Ali M. Arain , Quinn Emanuel Urquhart & Sullivan, LLP, New York, New York; Attorneys for Plaintiffs Hildene Capital Management, LLC, Hildene Opportunities Master Fund, Ltd., Brett Jefferson, Alesco Preferred Funding IV, Ltd., Alesco Preferred Funding XVI, Ltd., Alesco Preferred Funding XVII, Ltd., Trapeza CDO I, LLC, Trapeza CDO II, LLC, and Trapeza CDO III, LLC.

Gary F. Traynor , Bruce E. Jameson , J. Clayton Athey , Prickett, Jones & Elliott, P.A., Wilmington, Delaware; Mark J. Hyland , Jeffrey M. Dine , Benay L. Josselson , Seward & Kissel LLP, New York, New York; Attorneys for Plaintiff Wells Fargo Bank, N.A. in its Capacity as Institutional Trustee for BBC Capital Trust IX and BBC Capital Trust XII.

Barry M. Klayman , Cozen O'Connor , Wilmington, Delaware; Andrew I. Silfen , Arent Fox LLP, New York, New York; Timothy F. Brown , Jeffrey N. Rothleder , Jackson D. Toof , Arent Fox LLP, Washington, D.C.; Attorneys for Plaintiff Wilmington Trust Company in its Capacity as Indenture Trustee for BBC Capital Trust II, BBC Capital Trust XI, and BBX Capital Trust 2007 II(a).

Collins J. Seitz, Jr. , Garrett B. Moritz , S. Michael Sirkin , Seitz Ross Aronstam & Moritz LLP, Wilmington, Delaware; Eugene E. Stearns , Adam M. Schachter , Cecilia Duran Simmons , Gordon M. Mead, Jr. , Geri F. Satin , Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., Miami, Florida; Attorneys for Defendant BankAtlantic Bancorp, Inc.


LASTER, Vice Chancellor.

Defendant BankAtlantic Bancorp, Inc. ("Bancorp") is a bank holding company. Bancorp holds 100% of the equity of BankAtlantic, a federal savings bank, which is Bancorp's only substantial asset. Bancorp has agreed to sell BankAtlantic to BB & T Corporation. As consideration, Bancorp will receive 100% of the equity of a newly formed entity that will own BankAtlantic's "criticized assets," such as non-performing loans and foreclosed real estate...

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