Southeast Corporate extends capital subscription deadline to June 29
06/05/2012 09:41 am
Southeast Corporate Federal Credit Union, headquartered in Tallahassee, has extended the deadline to contribute Perpetual Contributed Capital (PCC) before a planned merger with Corporate One FCU in Columbus, Ohio. Credit unions now have until June 29 to finalize the details of their subscription. Currently Southeast Corporate has $66.4 million of the $75 million in PCC required for the merger.
"Last week, we announced to our members that we are extending our capital subscription period for a month to June 29 [from the previous May 31] to allow more time for the dollars to roll in that we still expect," Brad Miller, Southeast Corporate president/CEO, told CUNA News Now. "Not everyone had all their paperwork finished and signed, sealed and delivered. So we needed to extend the offering."We're in pretty good shape. I feel confident we will get to the capital level necessary to close the merger. But we still have a little more work to do this month to get to that dollar level," said Miller.It is anticipated that the "fence-sitters" will soon send enough capital to meet the $75 million goal, Lee Butke, Corporate One president/ CEO, told CUNA News Now. He said about 15 people have committed to the offering, but have not finalized their paperwork. "Other folks said, if needed, they would come forth with additional capital," he added. "The good news is the vast majority of credit unions associated with Southeast Corporate support this."
The merger will protect member capital and is cost-effective, Butke said. "It's the best way to solve problems in the industry," he concluded.
The merger should become effective July 1, Butke and Miller said. Click here to read the full
CUNA News Now story.