FedNat Holding outlines Insure-Link auction procedures, sets NSI as stalking horse

Chicago, Dec. 29 – FedNat Holding Co. outlined proposed bid and auction procedures for substantially all of debtor Insure-Link, Inc.’s assets, according to a motion filed with the U.S. Bankruptcy Court for the Southern District of Florida.

Insure-Link is the debtors’ agency business.

NSI Insurance Group, LLC has submitted a proposal and FedNat is seeking approval to designate NSI as the stalking horse bidder.

A marketing process will continue, even with NSI as stalking horse bidder, the motion states.

The company is seeking a Jan. 17 hearing to approve the bid procedures.

A bid deadline is proposed for Feb. 14 with an auction, if applicable, to be held on Feb. 16.

A sale hearing would ideally take place on Feb. 21.

The sale would close on Feb. 23.

FedNat acknowledges that the timeline is accelerated but is justified partially by the month-to-month lease of the business.

NSI bid

NSI has agreed to pay $1.89 million for Insure-Link’s insurance agency business.

A break-up fee would be due NSI for 3.5% of the final purchase price.

Minimum overbids should be in the amount of $100,000 over the purchase price.

As background, FedNat mentions that NSI has had a track record of successfully closing transactions of similar companies, completing 12 transactions in the past five years.

The insurance holding company, which is based in Sunrise, Fla., filed bankruptcy on Dec. 12. The Chapter 11 case number is 22-19451.

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