Latvian entrepreneurs buy Colorado National Bank for $9m
Colorado National Bank has been purchased for $8.97 million by Latvian fintech entrepreneurs Marks Moskvins and Maksims Jarosevskis.
Colorado National Bank, which declared Chapter 11 bankruptcy in November, has two branches in downtown Denver and Palisade.
Moskvins and Jarosevskis are the co-owners of Transact Pro, a payment processing firm based in their home country.
“Our knowledge and experience will help to build innovative new banking services for the bank that will transform it into a modern bank for the 21st century,” Moskvins says.
The bank’s auction, held in early April, was granted to Moskvins and Jarosevskis for $8.97 million (following a $5 million initial pre-auction offer) after the original winners of the bid didn’t make it to the purchase deadline.
Moskvins and Jarosevskis will join the Colorado National Bank’s board. John Sprengle, who had been the bank’s president, will stay on in a senior management position.
Frank Hegeman of Harpia Capital acted as financial advisor to the buyers in the acquisition.
According to the US Courts website, a case filed under Chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganisation” bankruptcy.
A Chapter 11 debtor usually proposes a plan of reorganisation to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in Chapter 11.