By: Chris Kramer
December 15, 2010
James Farrell, the chief executive and president of the financially troubled Evergreen State Bank, recently filed for chapter 7 bankruptcy protection .
Farrell's wife joined him in his chapter 7 filing, and the couple listed $50,000 in assets and debts between $1 and $10 million on their filing, Madison.com reports.
Farrell's bankruptcy attorney explained that his client bought stock in Evergreen years ago, borrowing heavily from two other banks to do so. Currently, "the stock is worth far less than what he owes on it," the attorney said. Farrell's creditors are owed more than $2 million, and want to be paid, he added.
Evergreen State Bank is under-capitalized due to a large volume of defaulted loans, according to the news source. The bank is reportedly under federal orders to boost its capitalization. Farrell recently told shareholders that the bank's officials are looking for investors, but he also warned them that the value of the company's common stock is expected to fall substantially and possibly "be rendered worthless."