Aurora Bank Completes Sale of Substantially All Bank Assets and Insured
NEW YORK -- July 02, 2012
Aurora Bank, FSB (Aurora), an indirectly wholly-owned multi-billion dollar
subsidiary of Lehman Brothers Holdings Inc. (Lehman), today announced the
completion of the physical transfer of approximately 290,000 serviced borrower
accounts to Nationstar Mortgage.
Doug Lambert, a Managing Director of Alvarez & Marsal and a director of
Aurora's board, said: “In completing the sale of substantially all of Aurora
through an open-door process, we have achieved something that has rarely been
accomplished over the past few years. I want to recognize the invaluable
strategic guidance and support we have received from the bank’s legal advisors
at Arnold & Porter for their insightful direction and participation in this
process, as well as the sacrifices and contributions of Aurora’s management
team and board of directors -- their efforts greatly contributed to this
favorable resolution and will be critical under the continuing consent order.
Finally, we would never have been able to successfully complete the
disposition of these assets and insured deposits without the dedicated efforts
of our investment bankers at Keefe Bruyette & Woods and Deutsche Bank.
"This resolution is a milestone that could not have been reached without the
consistent hard work and commitment from our employees. Though not a required
part of the transaction, Nationstar has said that many of Aurora’s employees
have taken positions with Nationstar, allowing continuity of servicing to
borrowers as well as minimizing, as much as possible, impact to the employee
base from the sale transaction."
Following the closing of its insured deposit portfolio, Aurora will continue
to exist as a federal savings bank as it seeks to comply with the terms of a
consent order it entered into along with 13 other regulated institutions in
April 2011. As a result of the sales announced on June 29, 2012, Aurora will
retain substantial liquid assets which will be used to comply with its
obligations under the consent order and ultimately distribute its remaining
proceeds to Lehman creditors.
Lehman Brothers Holdings Inc.
Kimberly Macleod, 646-285-9215
Linden Alschuler Kaplan Public Relations
Steven Alschuler, 212-575-4545
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