A group of Lancaster County-based investors have again withdrawn their application to acquire the West Chester financial institution, according to a Philadelphia Business Journal report by Jeff Blumenthal.
The deal for Stonebridge Bank was first approved in bankruptcy court in late 2015 for $570,000.
“Regulators are being tough in general and even tougher when the buyer is not an established bank,” said Reed Smith lawyer Travis Nelson. “That’s why pre-filing (of an application) dialogue is so important in those cases.”
Without official word from lead investors Gordon Denlinger, a former state representative, and Conestoga Wood Specialties Corp. executives Norman and Anthony Hahn, the fate of Stonebridge Bank remains uncertain.
The article explained that investors intended to recapitalize the bank with about $12 million and change its name to Hamilton Bank before eventually opening a Lancaster County branch.
Read more about the latest development in the bid to buy Stonebridge Bank in the Philadelphia Business Journal here.