Troubled lender Amcore Financial Inc AMFI.PK filed for bankruptcy protection on Thursday to liquidate its assets, it said in a filing.

Amcore Financial, which has been in talks with its largest stakeholders, intends to file a plan of liquidation by August 24 and continues to operate its business as a debtor-in-possession, it said in a filing with the U.S. Securities and Exchange Commission.

In May, the company received a notice of default from JPMorgan Chase Bank, N.A., that demanded payment of $11.7 million due under its credit facility. JP Morgan Chase Bank set a deadline of May 7 for the payment.

Amcore Financial, which had been operating under regulatory restrictions, had previously said that failure to attract new capital in 2010 may affect its ability to continue as a going concern.

Its unit Amcore Bank, with $3.8 billion in assets and $3.4 billion in total deposits as of December 31, 2009, was seized by regulators on April 23, and sold to Harris National Association, a part of Canada’s BMO Financial Group.