Bank to reorganize  

The Vincennes Sun-Commercial Vincennes, Indiana Sun, Jan 2, 1983 Bank to reorganize CULVER, Ind. (AP) - A hearing date concerning bankruptcy reorganization is expected within two weeks for State Exchange Finance Co., a northern Indiana bank holding firm. The company has filed for reorganization under Chapter 11 of the Federal Bankruptcy Act.

"The (filing) action was necessary due to loan losses the company suffered primarily as a result of the de-pressed farm economy," said Fred Adams, the company's board chairman.

State Exchange filed for reorganization Wednesday in U.S. Bankruptcy Court in South Bend. Adams said the action was necessary to minimize potential losses to holders of the company's uninsured investment notes.

State Exchange Finance owns Farmers State Bank in LaPaz and is affiliated with the State Exchange Bank in Culver. The board of directors is the same for all three.

No danger

William Ray, director of Indiana Association of Financial Institutions, said depositors at both banks were not 1n danger. "Neither of the banks is in trouble," said Ray. "It simply has to do with the finance company."

Plymouth-based attorney William Fortin and Chicago lawyer Salvatore A. Barbatano were appointed to oversee the company until the uninsured creditors can meet.

Under Chapter 11, a company obtains a federal court order that frees it from the threat of creditor lawsuits until it can develop a plan to put its finances In order. While the reorganization proceeds, the activities of management must be approved by the court.