Opinion ID: 2301005
Heading Depth: 2
Heading Rank: 4

Heading: Bancorp Tries To Raise Capital.

Text: In 2009, with losses mounting, Bancorp realized that it needed to raise capital. Management hired an investment bank and went on a road show to raise $75 million. No one was interested. Investors feared that Bancorp would not be able to put new money to work; instead it would hold the funds to meet capital requirements or use them to pay down debt. After failing to find new investors, Bancorp turned to its existing stockholders. In September 2009, Bancorp sought $100 million in a rights offering but raised only $75 million. In July 2010, Bancorp sought another $25 million in a rights offering but raised only $20 million. In June 2011, Bancorp sought another $30 million in a rights offering but raised just $11 million.