The parent of First Bank and Trust Co. of Illinois filed for bankruptcy on Wednesday with a plan to restructure more than $50 million in debt, Dow Jones Daily Bankruptcy Review reported today. Northwest Bancorporation of Illinois Inc. said in court filings that it has a pre-packaged reorganization plan in place with support of both management and the Hershenhorn family, who owns more than 90 percent of Northwest through hybrid securities that have elements of both equity and debt. First Bank and Trust, a community bank with one branch in Palatine, Ill., isn't part of the bankruptcy and will continue operating normally, Northwest President Alan Reasoner said in an affidavit accompanying the company's filing.
