NEW YORK (Reuters) - BankAtlantic Bancorp Inc , which last year sued a prominent banking analyst over a report that referred to its financial condition, said it is halting its common stock dividend and share repurchases, and will defer interest payments on $294.2 million of debt.
In a statement on Friday evening, the Fort Lauderdale, Florida-based company said documents governing its junior subordinated debt allow the deferral of interest payments for up to 20 straight quarters without default or penalty.
It said that during the deferral period, dividend payouts will also be suspended on related trust preferred securities. The quarterly dividend was 2.5 cents per share.
Chief Executive Alan Levan in a statement cited the "current challenging economic environment" for the deferrals, which he said "will allow the company to preserve liquidity." He said the company remains "well-capitalized."
BankAtlantic last week said it lost $156.6 million in the fourth quarter, and excluding items lost $27 million in the period. The bank ended the year with $5.8 billion of assets.
Last July, BankAtlantic accused banking analyst Richard Bove in a lawsuit of defamation and negligence over his report titled "Who Is Next?"
Chief Executive Levan said at the time that BankAtlantic's financial condition showed that the bank did not belong on any list of lenders that might be "next" to fail.
BankAtlantic also sued Bove's employer, Ladenburg Thalmann Financial Services Inc
BankAtlantic did not immediately return a call seeking further comment. Its shares closed down 25 cents at $1.10 on the New York Stock Exchange on Friday. Their 52-week high is $27.50, set last February 22.
(Reporting by Jonathan Stempel; Editing by Gary Hill)
