FedNat’s Chapter 11 plan of liquidation accepted by all classes

By Sarah Lizee

Olympia, Wash., Oct. 6 – FedNat Holding Co.’s Chapter 11 plan of liquidation was accepted by all voting creditor classes, according to a tabulation summary filed Friday with the U.S. Bankruptcy Court for the Southern District of Florida.

The results are as follows:

• All 23 holders of $107.83 million of FedNat Holding senior notes claims voted to accept the plan;

• Eight holders, or 57.1% in number, of $47.09 million, or 100% in amount, of FedNat Holding general unsecured claims voted to accept the plan, while six holders, or 42.9% in number, of $6.00, or 0% in amount, voted to reject the plan;

• All six holders of $13.81 million of FedNat Underwriters, Inc. general unsecured claims voted to accept the plan;

• All seven holders of $259,337.71 of ClaimCor, LLC general unsecured claims voted to accept the plan;

• Both holders of $2.71 million of Century Risk Insurance Services, Inc. general unsecured claims voted to accept the plan; and

• The one holder of $1.00 of Insure-Link, Inc. general unsecured claims voted to accept the plan.

The final hearing on the plan is scheduled for Oct. 10.

The plan has the support of the official committee of unsecured creditors, as previously reported.

A plan administrator will marshal the remaining assets of the debtors’ estates, review the claims and make distributions from the remaining assets of the estates to claimholders.

Under the plan, holders of secured claims and priority claims will be paid in full.

Holders of senior notes claims and general unsecured claims against FedNat Holding, which are estimated in the amount of $127.55 million, are expected to receive a recovery of 5.4% to 16.7%.

Holders of general unsecured claims against FedNat Underwriters, Inc., which are estimated in the amount of $14.26 million, are expected to receive a recovery of 16.4% to 100%.

Holders of general unsecured claims against ClaimCor, LLC, which are estimated in the amount of $6,778, are expected to receive a 100% recovery.

Holders of general unsecured claims against Century Risk Insurance Services, Inc., which are estimated in the amount of $2.81 million, are expected to receive a recovery of 58.2% to 100%.

Holders of general unsecured claims against Insure-Link, Inc., which are estimated in the amount of $2.54 million, are expected to receive a recovery of 79.3% to 100%.

Holders of preferred stock interests and common stock interests are expected to receive nothing.

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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