On Monday, Delaware Chancery Court Vice Chancellor J. Travis Laster permanently enjoined BankAtlantic Bancorp from closing on a planned sale of $2.1 billion in loans and $3.3 billion in deposits to BB&T. A group of indentured trustees and investors holding trust-preferred securities had sued to prevent the sale, claiming it would allow BB&T to "cherry-pick" BankAtlantic’s assets and leave the bank holding only troubled and foreclosed loans. Laster concluded that the deal would breach BankAtlantic’s contracts with the investors and cause the bank to default on its obligations.
"The ensuing event of default will result in the debt accelerating," Laster wrote. "Bancorp cannot pay the accelerated debt. Because this eventuality will inflict irreparable harm on the plaintiffs, I have entered contemporaneously an order permanently enjoining Bancorp from consummating the sale."
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