Acceptance Insurance plans to ask court to convert bankruptcy case

By Caroline Salls

Pittsburgh, Aug. 10 - Acceptance Insurance Cos. Inc. plans to ask the U.S. Bankruptcy Court for the District of Nevada to convert its Chapter 11 bankruptcy case to Chapter 7, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The motion will be filed on Aug. 13.

If the conversion is approved, Acceptance said it will cease its remaining operations, and its assets and properties will be liquidated for the benefit of creditors.

The company said it believes that its stockholders and the holders of the preferred securities issued by AICI Capital Trust will not receive material distributions in or after the liquidation proceedings.

Acceptance Insurance, a Council Bluffs, Iowa-based insurance company, filed for bankruptcy on Jan. 7, 2005. Its Chapter 11 case number is 05-80059.

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