More complaints on proposed Waterford deal - Business First of Buffalo:

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Nearly 30 shareholders, including former Waterford President Kathleen have written letters of objectioj toRichard Neiman, superintendent of the state Banking The letters request that: The proposed acquisitiojn be delayed or rejected until the state Banking Department determiness whether the bank is following provisionsw of a cease and desist order issued in Bank shareholders be informed, in writing, by the state Bankinvg Department about whether the terms of the cease and desisft order will continue if the bank is Full disclosure of the financial impact of the acquisition be included on the acquisition applicationb to the state Banking Department.
The department disclosed the potential financial impact to existing The department requires the bank to producwe financial statements from the last two quarters in 2008 and the firsg two quartersof 2009. The letters, signedx by shareholders, were sent July 14 to the stated Banking Department as part of a package compiled byJosephg Manna, an attorney for LLP who is representiny Flemming. They follow a letter sent July 1 to the department by localk businessmanHormosz Mansouri, who made similar appeals.
In shareholders received a letter from Waterford President Orrin Tobbe outlining the proposerd deal withVCH Bank, a new banking company that has requestedx permission from the state Banking Department to form. VCH Bank will be led by Jasonb Aintabi of NewYork City, who, under the propose d acquisition agreement, would pay $9 million to acquire the bank. At the Tobbe said the money will be used to make the bank and to allow the bank to invest in loca companies andresidential mortgages. The deal must be approve by the state Banking Department andthe bank’s shareholders. Unde the agreement, shareholders would receivef two cents per each dollar invested inthe start-up Manna said.
But shareholders originally paid $10 per share, he Tobbe’s June letter, meanwhile, said shareholders would received 50 percent ofthe bank’s aggregate depositas at the time the acquisitiohn is finalized. Jill Schultz, attorney for the bank, said an letter will be sent this week to shareholders that explains the proposedc deal andanswers questions. Schultz, of the Burnes & Schultz law firm in said Tobbe has received support fromother “At least 45 percent (of the bank’sa shareholders) have been talking to Orrin Tobbe and have expressex that they are in favor” of the acquisition, Schultsz said.
It is unclear how the remainingshareholders feel, she In a cover letter to Neiman, Manna said that this grou p of shareholders own aboutt 18 percent of the bank’s total an amount equal to more than $1.8 He said the bank’zs board of directors “has not adequately communicated with the shareholders about the financial status of the the proposed merger or the ceass and desist order.” The Banking Board was supposed to discuss the proposec acquisition earlier this month, but the meetint was canceled. The board is scheduled to meet againon Aug. 6.