Moncor Inc. Files For Reorganization
ALBUQUERQUE, N.M. (AP) _ Financially troubled Moncor Inc., once New Mexico’s third-largest bank holding company, has filed for reorganization under Chapter 11 of the federal Bankruptcy Code.
The petition by First City Financial Corp., also known as Moncor Inc., lists total assets of $3 million and total liabilities of $6.781 as of July 31. It was filed Thursday in U.S. Bankruptcy Court here.
Chapter 11 allows a company to obtain a court protection from creditors’ lawsuits until it can develop a financial recovery plan.
Moncor President Tom W. Kerl was not immediately available for comment Friday. A woman who answered the telephone at Moncor headquarters said Kerl’s office had been moved to another floor and that the telephones there had not been connected.
Moncor announced in April it suffered a $23.7 million loss in 1984, largely because of losses on loans to recession-stricken farmers and oil companies in southeastern New Mexico.
Moncor Inc. has shed four of its six banks since, leaving the holding company with banks in Hobbs and Roswell.
In July, Moncor stock was removed from over-the-counter trading at the company’s request. The stock, which had been issued at $10 per share in 1982, closed at $1.75.
On Thursday, the Lea County Commission decided to transfer its $1.3 million checking account out of the Hobbs bank, said Leon Faris, Lea County Manager.
The action came two days after Deputy State Treasurer Jim Steward announced that the state had withdrawn $41 million from the Moncor Bank in Hobbs.
He said the state began a gradual withdrawal of deposits from Moncor banks in Carlsbad, Hobbs and Roswell soon after the holding company reported its 1984 losses.