Dallas (Vocus) August 29, 2009
On August 27, 2009, Guaranty Financial Group Inc. ("GFG") and its wholly owned subsidiaries, Guaranty Group Ventures Inc., Guaranty Holdings Inc. I, and Guaranty Group Capital Inc. (collectively with GFG, the "Debtors") filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the "Bankruptcy Court").
These cases are styled and numbered In re Guaranty Financial Group Inc., Case No. 09-35582-bjh, Guaranty Group Ventures Inc., Case No. 09-35583-hdh, Guaranty Holdings Inc. I, Case No. 09-35584-bjh, and Guaranty Group Capital Inc., Case No. 09-35586-hdh. The cases have been assigned to Judge Barbara J. Houser, Chief Judge of the Bankruptcy Court. A motion for joint administration of these cases is pending before the Bankruptcy Court.
In addition, the Board of Directors of each of the Debtors has determined to reduce the size of the respective Boards and the number of officers serving each of the Debtors. That decision follows the appointment of the Federal Deposit Insurance Corporation ("FDIC") as receiver for Guaranty Bank. The Board of Directors of each of the Debtors has determined to consolidate all of its officer positions and has appointed Dennis S. Faulkner of Lain Faulkner, & Co., an accounting firm specializing in bankruptcy matters, as Chief Restructuring Officer ("CRO") of each of the Debtors.
Mr. Faulkner has also been elected to serve as the sole director of each of the Debtors effective August 27, 2009. Previously designated officers and members of the Board of Directors of the Debtors will no longer serve in their previous roles effective August 27, 2009.
The Debtors' bankruptcy proceedings are not expected to have any impact on the banking operations previously conducted by Guaranty Bank. Those operations were transferred by the FDIC to BBVA Compass as the FDIC announced on August 21, 2009.