"More suitors for LandAmerica - Stewart applies to acquire LandAmerica underwriters"
From Inman News:
Behind the newest development is LandAmerica's filing for "Chapter 11 bankruptcy protection Nov. 26, saying it planned to sell off the title insurance underwriting subsidiaries that account for up to 90 percent of its annual revenue in order to pay creditors."
LandAmerica owes more than $650 million and was having difficulty paying creditors after its 1031 property exchange subsidiary "invested proceeds in auction rate securities that had become insolvent." (Background here.)
The LandAmerica case is being heard in Richmond, Virginia, however, approval before the bankruptcy court "can approve the sale, the Nebraska Department of Insurance -- which regulates Lawyers and Commonwealth -- must sign off on the deal."
Nebraska regulators, already scheduled to hold a hearing Monday to rule on Fidelity's application to acquire Lawyers and Commonwealth has now been presented with an application by Stewart Title Guaranty Co., the nation's fourth-largest title insurer.
We've heard from at least one lender, CapitalOne, that it will not accept title insurance commitments issued on behalf of the LandAmerica title companies. We've also heard that other New Jersey title companies are quickly signing Commonwealth and Lawyers Title agents to pick up transactions where the lender has balked at accepting their title commitments.
The sale of LandAmerica's title business to Fidelity and Chicago Title is far from a done deal. Next week's hearing will add another chapter to the story.
From Inman News:
Fidelity National Financial Inc. is not the only suitor hoping to snatch up LandAmerica Financial Group Inc.'s title insurance underwriting subsidiaries in bankruptcy court, according to creditors seeking to derail fast-track approval of the sale.
LandAmerica says it hasn't received a better offer than the combined $298 million Fidelity is offering for Lawyers Title Insurance Corp., Commonwealth Land Title Insurance Co. and United Capital Title Insurance Co., and has asked the bankruptcy court to approve the sale next week.
Behind the newest development is LandAmerica's filing for "Chapter 11 bankruptcy protection Nov. 26, saying it planned to sell off the title insurance underwriting subsidiaries that account for up to 90 percent of its annual revenue in order to pay creditors."
LandAmerica owes more than $650 million and was having difficulty paying creditors after its 1031 property exchange subsidiary "invested proceeds in auction rate securities that had become insolvent." (Background here.)
The LandAmerica case is being heard in Richmond, Virginia, however, approval before the bankruptcy court "can approve the sale, the Nebraska Department of Insurance -- which regulates Lawyers and Commonwealth -- must sign off on the deal."
Nebraska regulators, already scheduled to hold a hearing Monday to rule on Fidelity's application to acquire Lawyers and Commonwealth has now been presented with an application by Stewart Title Guaranty Co., the nation's fourth-largest title insurer.
We've heard from at least one lender, CapitalOne, that it will not accept title insurance commitments issued on behalf of the LandAmerica title companies. We've also heard that other New Jersey title companies are quickly signing Commonwealth and Lawyers Title agents to pick up transactions where the lender has balked at accepting their title commitments.
The sale of LandAmerica's title business to Fidelity and Chicago Title is far from a done deal. Next week's hearing will add another chapter to the story.
Vested Title Inc., 648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306.
Tel 201-656-9220. Fax 201-656-4506.
E-mail vti@vested.com - http://www.vested.com/
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Tel 201-656-9220. Fax 201-656-4506.
E-mail vti@vested.com - http://www.vested.com/
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