Cecil Bancorp has reached a deal with investors to recapitalize the long-troubled bank with $30 million and plans to use a bankruptcy auction to secure the cash, the Baltimore Sun reported on Monday. The investors have not been named, but Cecil President and CEO Terrie Spiro said the group includes investment funds that focus on banks and high-net worth individuals from across the country, who were organized by Hovde Group, an investment banking firm. The plan, which requires federal approval, is meant to prevent the Elkton-based parent of Cecil Bank from failing. In 2015, federal banking regulators ordered Cecil to raise capital within 90 days but took no action when the bank missed the deadline and its loss continued to mount. The bank holding company filed for a chapter 11 reorganization in Baltimore's federal bankruptcy court on Friday. The bank's routine business for customers, including deposits and loan commitments, are unaffected by the bankruptcy.
