NOVA Financial Holdings, Inc., Announces Intention to Declare Chapter 7 Bankruptcy
NOVA Financial Holdings, Inc., (“NOVA” or “the Company”) a registered bank holding company, today announced that its Board of Directors intends to file a petition for Chapter 7 Bankruptcy and commence an orderly liquidation.
NOVA had been following a plan to strengthen its capital base that had been adopted in 2010 in conjunction with an agreement with the Federal Reserve Bank of Philadelphia. Despite the progress achieved across a breadth of objectives established by the plan, the ongoing effects of the weak economy negatively impacted its capital position. In the plan, NOVA also agreed to raise additional capital, which the Company was unable to consummate due to the filing of ill-conceived lawsuits by a few disgruntled shareholders. NOVA made attempts to settle the shareholder litigation, all of which were summarily rejected by the shareholders. Ultimately, the unresolved litigation created enough ongoing uncertainty throughout the investment community that the company's negotiations with investor groups that had expressed interest in providing new capital were unsuccessful.
NOVA Financial Holdings, Inc.
NOVA Financial Holdings, Inc. is a registered bank holding company and is subject to regulation and supervision by the Board of Governors of the Federal Reserve System.
Gregory FCA Communications
Joe Hassett, SVP