OPTIMUMBANK HOLDINGS, INC. (NASDAQ:OPHC) Files An 8-K Other Events
Item 8.01 – Other Events.
As previously reported, an affiliate of Moishe Gubin, a director of OptimumBank Holdings, Inc. (the “Company”), purchased all of the outstanding trust preferred securities (the “TRUPS”) issued by OptimumBank Capital Trust I (the “Trust”). The purchaser was an Indiana limited liability company (the “Purchaser”) and the seller was an unaffiliated investment fund. When the TRUPS were issued, the Company issued a $5,155,000 junior subordinated debenture (the “Debenture”) to the Trust, which had been formed by the Company to issue and sell the TRUPS. The TRUPS represent undivided beneficial interests in the Debenture.
The Company is in default with respect to the Debenture due to its failure to make certain required interest payments. The trustee, Wells Fargo Bank (the “Trustee”), and the owners of the TRUPS are entitled to accelerate the payment of the principal amount of the Debenture plus accrued and unpaid interest. To date, neither the Trustee nor the holders have accelerated the outstanding balance of the Debenture.
Although the Company and the Purchaser have not executed a formal, definitive bilateral agreement, on March 13, 2019 the Purchaser provided the Company with written representations that the Purchaser will not accelerate and demand payment of any of the principal or accrued interest of the Debenture within the period ending 12 months after the filing with the Securities and Exchange Commission by the Company of its Annual Report on Form 10-K for the year ended December 31, 2018.
About OPTIMUMBANK HOLDINGS, INC. (NASDAQ:OPHC)
OptimumBank Holdings, Inc. serves as a bank holding company for OptimumBank (the Bank). The Bank provides a range of community banking services to individuals and corporate customers through over three banking offices located in Broward County, Florida. The Bank provides a range of consumer and commercial banking services to individuals and businesses. Its services include demand interest-bearing and non-interest-bearing accounts, negotiable order of withdrawal (NOW) account, money market deposit accounts, Visa debit and automated teller machine (ATM) cards, cash management, direct deposits, notary services, money orders, night depository, cashier’s checks, domestic collections, drive-in tellers and banking by mail. The Bank offers Internet banking services through its Website, www.optimumbank.com. The Bank has over eight wholly owned subsidiaries primarily engaged in holding and disposing foreclosed real estate, and a subsidiary primarily engaged in managing foreclosed real estate.
