SOUTHEAST BANK CORP.

Case Highlights

• Generated assets resulting in full recovery by all claimants
• Orchestrated novel litigation against FDIC and others for their role in Southeast’s failure
• Managed failed projects and real estate developments to successful sale

Case Narrative

DSI was appointed Chapter 7 Trustee for this bank holding company, parent of Southeast Bank N.A., which was at the time the fifth-largest federally chartered banking institution ever to fail.  The Trustee and DSI generated recoveries resulting in full payment, in cash, to all claimants, despite initial estimates that creditors would receive only three to five percent on their outstanding claims.  The presiding judge described these results as “undeniably exceptional, and largely attributable to Mr. Brandt’s experience and superior stewardship of the estate.”  DSI and Mr. Brandt employed a number of novel litigation theories that resulted in, among other things, a substantial settlement with the FDIC.  DSI also undertook an aggressive strategy in the liquidation of a host of ancillary assets in a number of the other subsidiaries and affiliates still controlled by the holding company.  These assets included commercial real property, buildings, raw land, real estate joint ventures and residential and commercial development agreements, as well as venture fund and private equity investments.