Solvang-based Harrington West Financial Group, the former parent of failed Los Padres Bank, announced Sept. 10 that it has voluntarily filed for Chapter 11 bankruptcy.
Harrington West, listing more than $26 million in liabilities, said it intends to file a liquidating plan within the next few months. With the loss of Los Padres Bank — its primary asset — in a seizure by federal regulators in August, Harrington West now has assets of $579,282, plus a potential tax refund of an unknown amount.
On Aug. 20, federal banking regulators closed Solvang-based Los Padres Bank after its capital levels dwindled. The bank was taken into receivership by the Federal Deposit Insurance Corp. and its 14 branches were acquired by San Diego-based Pacific Western Bank.
For more about the Los Padres Bank failure, click here.