UPDATE 1-Nexity Financial files for bankruptcy

* Lists both assets and debt in $10 mln-$50 mln range

* Says bank’s daily operations not directly affected

July 22 (BestGrowthStock) – Nexity Financial Corp (NXTY.PK: ), the
Alabama-based parent of Nexity Bank, filed for bankruptcy
protection under a pre-negotiated deal with bondholders that
includes a private sale of $175 million of stock.

The company said last week that it would file for Chapter
11, after failing to win enough support from creditors to
restructure its debt.

In court papers, Nexity listed both assets and liabilities
in the $10 million to $50 million range.

Birmingham-based Nexity had tried to recapitalize itself
after the Federal Deposit Insurance Corp ordered the banking
unit to bolster capital in March 2009.

It provides capital and support services to community banks
and small businesses.

Nexity Bank’s daily operations will not be directly
affected and deposits will remain insured up to FDIC limits,
the company said.

The case is In re: Nexity Financial Corp, U.S. Bankruptcy
Court, District of Delaware (Delaware), No: 10-12293.

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(Reporting by Santosh Nadgir in Bangalore; Editing by
Gopakumar Warrier)

UPDATE 1-Nexity Financial files for bankruptcy