FedNat Holding Company Voluntarily Files for Chapter 11 Bankruptcy Protection
12 Décembre 2022 - 12:00PM
FedNat Holding Company, a regional insurance holding company, today
announced that it and certain of its wholly-owned subsidiaries
(collectively, the “Company”) have filed voluntary petitions under
Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the Southern District of Florida in order to maximize
value for all stakeholders. As part of the Chapter 11 process, the
Company will evaluate all strategic alternatives to maximize value
for stakeholders, whether that be a reorganization of its business
or a sale of its assets.
The Company has approximately $6.5 million of
cash on hand, which will provide liquidity to support day-to-day
operations during the Chapter 11 process, enabling the Company to
operate business uninterrupted, including the timely payment of
employee wages and benefits and continued servicing of
customers.
As part of the reorganization process, the
Company will file customary “First Day” motions to allow it to
maintain operations in the ordinary course. The Company intends to
pay its employees in the usual manner and continue their primary
benefits and certain customer programs without disruption. The
Company expects to receive court approval for all these routine
requests.
Parties with questions about the Chapter 11
process may contact the Company’s Claims Agent, Stretto, at +1
(949) 861-5292 (toll-free in the U.S.) or +1 (888) 708-0592 (for
parties outside the U.S.). The Claims Agent has also set up a
website at https://cases.stretto.com/FedNat, which includes court
documents and other information regarding the bankruptcy case.
To manage the restructuring process, the Company
has engaged GGG Partners, LLC (“GGG”) as financial advisors, and
Nelson Mullins Riley & Scarborough LLP as legal advisors.
As previously reported, on September 30, 2022,
the Company engaged Katie S. Goodman, Managing Partner of GGG, to
serve as the Company’s Chief Restructuring Officer. Also as
previously reported, on November 3, 2022, the Company’s Board of
Directors appointed Richard B. Gaudet, GGG’s Head of Finance and
Accounting, to serve as interim Chief Financial Officer effective
November 18, 2022.
About the Company
FedNat Holding Company is an insurance holding
company that controls substantially all aspects of the insurance
underwriting, distribution and claims processes through our
subsidiaries, equity investments and contractual relationships with
independent agents and general agents. More information is
available at https://www.fednat.com/investor-relations/.
Forward-Looking Statements
The statements contained herein may contain
certain forward-looking statements relating to the Company that are
based on the beliefs of the Company’s management as well as
assumptions made by and information currently available to the
Company’s management. These forward-looking statements are, by
their nature, subject to significant risks and uncertainties. These
forward-looking statements include, without limitation, statements
relating to the results of the Chapter 11 process on the Company’s
business prospects, future developments, trends and conditions in
the industry and geographical markets in which the Company
operates, including its ability to restructure its business or
otherwise realize on its assets..
When used herein, the words “anticipate”,
“believe”, “could”, “estimate”, “expect”, “going forward”,
“intend”, “may”, “ought to”, “plan”, “project”, “seek”, “should”,
“will”, “would” and similar expressions, as they relate to the
Company or the Company’s management, are intended to identify
forward-looking statements. These forward-looking statements
reflect the Company’s views at the time such statement were made
with respect to future events and are not a guarantee of future
performance or developments. You are strongly cautioned that
reliance on any forward-looking statements involves known and
unknown risks and uncertainties. Actual results and events may
differ materially from information contained in the forward-looking
statements as a result of a number of factors, including any
changes in the laws, rules and regulations relating to any aspects
of the Company’s business operations and the results of the Chapter
11 proceeding, general economic, market and business conditions,
including capital market developments, changes or volatility in
interest rates, foreign exchange rates, equity prices or other
rates or prices, the actions and developments of the Company’s
competitors and the effects of competition in the insurance
industry on the demand for, and price of, the Company’s products
and services, various business opportunities that the Company may
or may not pursue. Except as required by applicable law and
regulations, the Company does not intend to update or otherwise
revise such forward-looking statements, whether as a result of new
information, future events or otherwise. As a result of these and
other risks, uncertainties and assumptions, forward-looking events
and circumstances discussed herein might not occur in the way the
Company expects, or at all. Accordingly, you should not place
reliance on any forward-looking information or statements. All
forward-looking statements herein are qualified by reference to the
cautionary statements set forth in this section.
Contacts
Katie S. Goodman, Chief Restructuring Officer
(404) 293-0137
Richard B. Gaudet, Interim CFO (404)
256-0003
or investorrelations@fednat.com
FedNat (NASDAQ:FNHC)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
FedNat (NASDAQ:FNHC)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024