Oregon Public Broadcasting

The parent company of Bank of the Cascades has once again extended agreements with two private investors who would take a $65 million stake in the company. It's the fifth time the agreements have been extended. As David Nogueras reports, Cascades' ability to close the deal will depend on the outcome of a lawsuit now working its way though court.

It's been almost exactly one year since the FDIC ordered the Bank of the Cascades to raise more cash. The Bend based bank, like many across the country was hit hard by the collapse of the real estate market. 

Cascades worked out a deal with its largest shareholder and a private equity fund to take a large stake in the company. 

But the deal hinged on the bank being able to take a large liability off its books. 

That would mean buying back securities from a Pennsylvania based group, Cohen and Company Financial Management. 

Cascades reached an agreement to do just that, but in a lawsuit filed in federal court a month ago, the bank claims Cohen and Company went back on the deal. 

The filing argues that's what's holding up the transaction with the two private investors.

The bank is seeking damages of $427 million.