FedNat receives court approval of bid procedures for Insure Link

By Sarah Lizee

Olympia, Wash., Jan. 30 – FedNat Holding Co. received court approval of the bid procedures for substantially all of debtor Insure-Link, Inc.’s assets, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Florida.

Insure-Link is the debtors’ agency business.

The company also gained approval to designate NSI Insurance Group, LLC as stalking horse bidder.

The bid deadline is 5 p.m. ET on Feb. 16. An auction, if needed, will be held on Feb. 17.

A sale hearing will take place on Feb. 23.

The timeline was adjusted slightly from the company’s original bid procedures, which saw a Feb. 14 bid deadline, Feb. 16 auction, and Feb. 21 sale hearing.

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

The deal includes a 3.5% breakup fee.

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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