FDIC Sells $4.5bn of Corus Assets
The Federal Deposit Insurance Corp. (FDIC) confirmed a consortium led by private investment firm Starwood Capital Group won the bid on much of the remaining assets of Corus Bank, which failed in mid-September. FDIC signed a bid confirmation letter to sell Starwood a 40% equity interest in a limited liability company created to hold the Corus assets, which bear a total unpaid principal balance of about $4.5bn. The Starwood-led consortium, called Northwest Investments, pays $554.4m for its equity stake. The consortium includes TPG Capital Group, Perry Capital and WLR Lefrak, according to the FDIC. The Starwood bid -- one of eight bidders -- secures an interest in a group of performing and non-performing construction loans and real estate-owned (REO) assets that make up the limited liability company. FDIC said it will hold a 60% equity interest in the company. The transaction, which is expected to close in mid-October, completes the sale of the majority of failed Corus's remaining assets. Regulators shut down Corus Bank on September 11, at which time the FDIC entered a purchase and assumption agreement with MB Financial Bank to assume all deposits and approximately $3bn of assets -- mainly cash and marketable securities. Write to Diana Golobay.