After another day of sharp falls for its share price, First NBC Bank Holding said that it has hired investment banks Sandler O’Neill & Partners and Piper Jaffray and “is exploring all strategic options to advance the interests of the company’s shareholders,” the Wall Street Journal reported today. Shares of the troubled New Orleans-based bank fell about 18 percent on Tuesday after an investor who is both a holder of the firm’s debt and betting against its stock suggested that the bank should consider a pre-packaged bankruptcy filing. HoldCo Asset Management released a public letter on Tuesday suggesting that a pre-packed filing that would wipe out holders of First NBC’s common stock would be the best solution to its ongoing financial struggles. HoldCo said that its proposed bankruptcy plan, where it would also provide $30 million of new equity for the bank, would be a solution.
