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Just as Florida legislators collect in (*11*)Tallahassee Monday, December 12, to begin a particular session to prop up the state’s besieged property insurance trade, a South Florida-based insurance company has voluntarily filed for petition below Chapter 11 of the Bankruptcy Code.
FedNat Holding Company, primarily based in Sunrise, Florida stated the transfer, which additionally contains “certain of its wholly-owned subsidiaries” filed within the voluntary Bankruptcy Court for the Southern District of Florida, will allow the company to maximise worth for all stakeholders, and will embody “reorganization of its business or a sale of its assets.”
In a press launch, FedNat, which was based in 1992, stated they’ve roughly $6.5 million of money available, which can help day-to-day operations and allow the Company to function enterprise and pay worker wages and advantages, whereas persevering with to service their coverage holders.
Back in September, FedNat grew to become the grew to become the sixth insurance company – and the sixteenth total – to land on the liquidation-receivership record wherein insurers cease writing future insurance policies or just withdraw from the Florida market, leaving hundreds of house owners with out property insurance.
At that point, FedNat had been accountable for some 56,000 insurance policies, among the many largest house insurers within the state. Earlier in 2022, FedNat had 140,000 insurance policies, earlier than transferring some 83,000 to a associated company, Monarch National Insurance Co which coincidentally.
To handle the restructuring, FedNat has employed GGG Partners, LLC as monetary advisors, and Nelson Mullins Riley & Scarborough LLP as authorized advisors. Previously, Katie S. Goodman, Managing Partner of GGG Partners, had been appointed to be the company’s Chief Restructuring Officer.
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