Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Insurance

Affirmative Insurance Holdings Chapter 11 Petition Filed

Affirmative Insurance Holdings (fka Instant Insurance Holdings) and seven affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 15-12136. The Company, which designs, underwrites and services non-standard personal automobile insurance policies, is represented by Christopher A. Ward of Polsinelli and Timothy Walsh of McDermott Will & Emery. On September 15, 2015, Earl R. Fonville resigned as chief financial officer, with C.E.O. Michael J. McClure assuming that role effective October 2, 2015. According to documents filed with the Court, "Affirmative has incurred losses from operations over the six years ended December 31, 2014, including an operating loss of $31 million for the year ended December 31, 2014. Losses over this period of time were primarily due to underwriting losses, significant revenue declines, expenses declining less than the amount of revenue declines, and goodwill impairments. The losses from operations were the result of significant new business written in 2012 and 2013, prior pricing issues in some states in which Affirmative has taken significant pricing and underwriting actions to address profitability, losses from states that Affirmative has exited, including Florida and Michigan, and goodwill impairment charges as a result of such losses." The Company's most recent Annual Report filed with the SEC indicates total assets of $338 million; however, the Chapter 11 petition's asset figure is just $25 million.

Read more Bankruptcy News