First Northwest Bancorp has reached a significant milestone in resolving bankruptcy proceedings involving several of its borrowers. The company, through its subsidiary First Fed Bank, has entered into a Settlement Agreement with Creative Technologies, LLC, Water Station Management, LLC, Refreshing USA, LLC, and Ideal Property Investments LLC, collectively known as the Debtors. These proceedings included both involuntary and voluntary bankruptcy filings. The agreement, which also involves the Joint Official Committee of Unsecured Creditors, seeks to resolve an adversary proceeding against the Bank. As part of the settlement, the Bank will release certain liens and make cash payments ranging from $2.87 million to $5.74 million, contingent on the percentage of unsecured creditors that agree to a mutual release of claims. This decision aims to mitigate risks, reduce costs, and eliminate distractions associated with ongoing litigation, aligning with the best interests of the Bank, the Company, and its shareholders.
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