Hildene Capital Management, a New York distressed-debt hedge fund, has threatened Portland, Ore.’s Albina Community Bancorp with involuntary bankruptcy if it defaults on its trust-preferred debt. Albina has been deferring interest on its trust-preferreds for five years and will soon default on about $6 million in debt and accrued interest if it doesn't pay. Complicating matters, Albina is currently under regulatory orders barring them from paying trust-preferred creditors. Last year, Albina sold a 90% stake in its bank to Beneficial State Bancorp in Oakland, Calif. by issuing new stock at the bank level, thus bypassing the debt-burdened holding company. The unusual recapitalization saved the bank, but it could expose the parent company to further legal challenges.