AmTrust Financial gets more time to file plan amid FDIC lawsuit

By Lisa Kerner

Charlotte, N.C., Sept. 24 - AmTrust Financial Corp.'s request for a third extension to its exclusive periods to file and solicit votes on a plan of reorganization was granted, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Ohio.

The court extended AmTrust's exclusive plan-filing period to Oct. 26 from Sept. 26 and the solicitation period to Dec. 24 from Nov. 26.

In making its request for the extension, AmTrust said the debtors face numerous challenges that require further discussion among the principal stakeholders before formulating and filing a plan.

The company said the outcome of its Federal Deposit Insurance Corp. litigation will dictate the timing, manner and extent to which creditor distributions can be made under a plan.

AmTrust Financial is the Cleveland-based holding company for AmTrust Bank. The company filed for bankruptcy on Nov. 30, 2009. Its Chapter 11 case number is 09-21323.

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