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Anchor Bank blames Associated for parent company's bankruptcy filing

Bankruptcy
Bankruptcy

MADISON, WI (WTAQ) - Two days after filing for bankruptcy, the parent company of Wisconsin’s fourth-largest bank said it lost over twice as much money in the last quarter as it did a year ago.

Anchor BanCorp of Madison said it had a net loss of $8.9 million from April through June, compared to a $3.4 million loss in the same quarter of 2012. Earnings dropped by 42 cents a share, compared to a loss of 16 cents the year before.

On Monday, Anchor Bank’s parent company said it filed for Chapter 11 bankruptcy to get out from under previous debts, and to put $175 million in newly-raised capital toward new loans.

Wednesday, the Wisconsin State Journal said Anchor blamed its bankruptcy filing on Associated Bank of Green Bay – which refused to reduce debt on a loan which Anchor borrowed from that bank and two others in 2008. The other two banks went along with the loan.

Associated refused comment on the matter. Anchor Bank repeated Wednesday the bank itself did not file for bankruptcy, and it will keep operating as normal. 

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