A recent BusinessDen article mentioned Haynes Boone for serving as associated legal counsel to a Latvian financial and payment-processing firm in the purchase of the Denver-based Colorado National Bank.
Marks Moskvins and Maksims Jarosevskis, the co-owners of payment-processing firm Transact Pro, closed on the purchase of Colorado National Bancorp’s 100 percent ownership in the Colorado National Bank on Aug. 20 for $8.97 million. In November, Colorado National Bancorp filed for Chapter 11 bankruptcy as part of an effort to facilitate the sale of the company.
Below are excerpts from BusinessDen about the complex deal, which involved a court ordered auction process:
Moskvins and Jarosevskis originally proposed paying approximately $5 million to acquire the bank. The bankruptcy filing, however, triggered a process in which other creditors, owners and qualified interested parties also could bid on the holding company’s stock ownership in the bank pursuant to the rules imposed by the court.
An auction was held in early April. The highest bidders were Jeffrey A. Desich and Richard A. Desich, who are executives at Equity Trust Co., an Ohio-based financial services firm and existing creditors of the parent holding company. The Desiches, however, failed to close on the purchase by a July 31 deadline.
The sale then reverted back to Moskvins and Jarosevskis as the back-up bidder, who by that time had secured approval from the Office of the Comptroller of the Currency, a necessary prerequisite to a change in control of a national bank.
Frank Hegeman of Harpia Capital acted as financial advisor to the buyers in the acquisition. Covington & Burling and Haynes Boone served as the buyer’s legal counsel.
Haynes Boone’s Patrick L. Hughes, a partner in the Restructuring Practice Group, and Andrew Gillespie, an associate in Finance and Restructuring, worked on the matter.
To read the full BusinessDen article, click here.