* Bank unit placed in FDIC receivership
* Company is insolvent, seeking liquidation or bankruptcy
* Stock to be delisted from Nasdaq
MEXICO CITY, May 3 U.S. lender Frontier Financial
Corp FTBK.O said on Monday that its bank subsidiary had been
seized by U.S. regulators at the Federal Deposit Insurance Corp,
and that the company expects to liquidate or file for bankruptcy.
Last month, the Everett, Washington-based company revised its
fourth-quarter results to reflect higher losses and said its weak
capital position raises substantial doubt about its ability to
continue as a going concern. [ID:nSGE62G0IF]
The company said at the time that its weak capital position
could lead to the conservatorship or receivership of its Frontier
The company said on Monday that its bank unit was closed by
the State of Washington, Department of Financial Institutions,
Division of Banks, and that the FDIC had been appointed as
receiver of the the bank.
It said that following the closure of the bank, the
corporation is "insolvent" and all of its directors resigned from
The company said it will either be dissolved and liquidated or
file for a Chapter 7 bankruptcy liquidation.
The company's shares were halted by Nasdaq before the market
open on Monday.
They closed on Friday at $3.57 per share on the Nasdaq.
Nasdaq said on Monday that it would delist Frontier's shares on
(Reporting by Emily Chasan in Mexico City; Editing by Phil