Archive for Friday, September 20, 1991

ESTATE SET TO INVITE OFFERS TO BUY LNB, FIVE OTHER BANKS

September 20, 1991

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Terry Sutcliffe, president of Lawrence National Bank, expects his mail next week to include one of about 40 letters being sent to potential bidders on banks owned by the estate of Kansas City businessman Robert F. Brozman.

"I expect to get it Monday," said Sutcliffe, who last month submitted an unsolicited bid on behalf of himself and a group of investors who hope to acquire control of the local bank.

Sutcliffe said representatives of the Brozman estate had not told him specifically what the letter would contain. However, he said, "I think there's going to be a target price as to what the estate is asking for the banks."

Sutcliffe also said he expected the letter to give a 30-day deadline for any additional or amended purchase offers.

Lawrence National Bank is one of six banks controlled by Brozman at the time of his death in June. The banks are among assets being sold to settle the estate's debts, which include $23.1 million in secret loans which Brozman allegedly diverted for personal and business purposes.

Jack Brozman, executor of his father's estate, could not be reached for comment this morning.

REPRESENTATIVES of the estate have said in filings made with the Johnson County District Court, where the estate is being probated, that the estate has debts of $83.6 million against assets of $89.4 million. They hope to generate $20.2 million in net proceeds from the sale of the banks, which they have said would be priced at 1.25 times their net worth.

Using that formula, Lawrence National Bank, with $6 million in capital, would sell for $7.5 million. The estate has said that after paying the debts of Jayhawk Bancshares, the holding company that owns majority interest in the bank, the sale would net $4.2 million.

Jack Brozman said earlier this month that he will evaluate all bids the estate received and forward those he deems acceptable to a committee made up of representatives of six banks that are the estate's major creditors. The creditors' committee would then evaluate the offers befor making a recommendation to the probate court, which must approve the sale of any of the estate's assets.

SUTCLIFFE has declined to say how much he bid for the bank last month or to name the investors behind him. He also said he had received no response to his bid last month, one of several unsolicited bids he believes have been made by the managements of the various Brozman banks.

"We have received no reaction, no action, no comment anything, and I don't think they've given any reaction on any bids from any of the others," he said.

Sutcliffe said today that he still had not heard of any other bidders specifically interested in buying Lawrence National Bank.

The other Brozman-controlled banks for which bids will be solicited are: First State Bank of Kansas City, Kan.; Central Bank & Trust of Hutchinson; City Bank & Trust of Wichita; Union National Bank of Elgin, Ill., and Metropolitan State Bank of Commerce City, Colo.

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