FedNat Holding gets extension of exclusive plan solicitation period

By Sarah Lizee

Olympia, Wash., Aug. 31 – FedNat Holding Co. secured an extension of its exclusive period to solicit votes on a Chapter 11 plan through Nov. 6 from Sept. 7, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Florida.

The company said it has sold its assets and has filed a plan, but several unresolved contingencies exist, including exploring options related to a potential sale of debtor ClaimCor, LLC’s assets, determining whether net operating losses can be preserved, resolution of certain disputed claims and filing federal and state income tax returns.

Further, the debtors are in the process of identifying litigation causes of action.

The company said the debtors are consulting with the official committee of unsecured creditors and its financial adviser on all of these contingencies.

The parties are also working to include a settlement with Hale-related parties in the plan. Through the settlement, Monarch National Insurance Co., Hale Partnership Capital Management and other related entities have agreed to support the plan.

FedNat said the extension will avoid a drain on the estates’ assets attendant to a premature proposal of a plan before the debtors and the committee have an opportunity to incorporate the settlement.

The insurance holding company, which is based in Sunrise, Fla., filed bankruptcy on Dec. 12, 2022. The Chapter 11 case number is 22-19451.

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