The owner of a recently failed Myrtle Beach bank filed for bankruptcy Friday, setting the stage for a sale of its assets to help pay off some of its creditors.
Beach First National Bancshares Inc. listed assets of about $3.75 million and debts of roughly $13.2 million.
Bankruptcy attorney J. Ronald Jones Jr. of the Charleston-based law firm Clawson & Staubes filed the case. He referred questions Friday to court documents.
The liquidation proceedings will be handled in downtown Charleston. The first hearing has not been scheduled.
The bankrupt holding company had owned the seven-branch Beach First National Bank, which last month become the first South Carolina-based bank to fail in more than a decade.
The Federal Deposit Insurance Corp. shut down the 14-year-old Myrtle Beach lender after the close of business April 9, marking the nation's 42nd bank failure.
Twenty-seven more have been seized since then.
The troubled bank, which served the Grand Strand and the Hilton Head Island markets, was unable to get out from under its mounting loan defaults, especially from commercial real estate borrowers.
Regulators found that it had significant decreases of assets and earnings because of unsafe and unsound business practices.
Beach First had $585.1 million in assets and $516 million in deposits. Bank of North Carolina, based in Thomasville, N.C., has assumed those.
Friday's bankruptcy filing showed that Beach First National Bancshares' biggest asset is its partial ownership in a Myrtle Beach office building valued at about $2.9 million.
Shareholders are likely to receive little if any of the proceeds from the liquidation sale.
The largest group of stockholders was made up of board members and bank employees, who collectively owned almost 30 percent of Beach First, according to the 2008 annual report, the most recent available.