FORT LAUDERDALE, FL, Jun 10, 2013 (Marketwired via COMTEX) --
BBX Capital Corporation ("BBX Capital" and/or the "Company") BBX -1.07% , formerly BankAtlantic Bancorp, Inc., announced today that it has settled its protracted litigation arising out of the Company's lending relationship with Daniel S. Catalfumo and certain members of his family and affiliated entities ("Catalfumo"). Pursuant to the settlement, Catalfumo will pay BBX Capital $25 million in cash and transfer property valued at approximately $14 million to BBX Capital by July 3, 2013. An additional $5 million in cash is payable by November 20, 2013. All of the payments and property transfers are subject to certain periods of extension and subject to Bankruptcy Court approval.
The loan to Catalfumo was originated by BankAtlantic and later transferred to BBX Capital when BBX Capital sold BankAtlantic to BB&T. The loan had gone into default and attempts at prior resolution with the borrowers were not successful. Legal collection actions were filed against approximately fifty Catalfumo entities in Florida, South Carolina and the Cayman Islands.
"This settlement reflects the seriousness of our efforts to collect amounts owed by borrowers. As a bank, BankAtlantic was under significant regulations to reduce classified assets quickly even if it involved taking a greater loss. Once the loan was transferred to BBX Capital, we were in a position to take the time and apply the resources to collect the debt. This settlement is expected to ultimately pay the full amount of our judgment, including default interest, attorney's fees and costs of collection. We are delighted to have this behind us and we will continue to focus on BBX Capital's other commercial loan borrowers who strategically defaulted to avoid repayment," commented Mr. John "Jack" E. Abdo, Vice Chairman of BBX Capital.