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In the largest U.S. bank failure since 2010, New Orleans-based First NBC Bank Holding Co. filed for Chapter 11 protection in its home city Thursday. The community bank, created in the aftermath of Hurricane Katrina, went public in 2013.
But in April, First NBC failed, with the Federal Deposit Insurance Corp. stepping in to serve as receiver, as a sale of the beleaguered bank’s assets was brokered to Gulfport, Mississippi-based Whitney Bank. Baton Rouge, Louisiana-based Steffes, Vingiello & McKenzie has been retained by First NBC to handle its bankruptcy case. Court filings by the firm show it has so far received $30,000 for its efforts in the matter, but the debtor has also accrued more sizeable legal bills.
According to a list of First NBC’s 20 largest unsecured creditors, the busted bank owes $642,417.13 to Skadden, Arps, Slate, Meagher & Flom; $140,437 to Cleary Gottlieb Steen & Hamilton; and $1,337.50 to New Orleans-based Pusateri, Barrios, Guillot & Greenbaum. The debts to Skadden are broken out in separate line items for $376,713.74 and $265,703,29.
The Litigation Daily, a sibling publication, reported earlier this month on Skadden’s role representing First NBC in shareholder litigation, and the firm has also been advising the bank holding company on the proposed sale of deposits and branches to Whitney Bank.
First NBC raised $115 million through an initial public offering in April 2013 that securities filings show generated $650,000 in legal fees and expenses for its lawyers at Fenimore, Kay, Harrison & Ford, an Austin, Texas-based firm currently working with Skadden on the asset sale to Whitney Bank. (Sullivan & Cromwell represented underwriters on First NBC’s IPO.)