On December 11, 2022 FedNat Holding Company and affiliates filed for chapter 11 protection in the Southern District of Florida (Case No. 22-19451). The Debtor reports Assets of $10M-$50M. The Petition states funds will be available to Unsecured Creditors.
Shane G Ramsey
Nelson Mullins Riley & Scarborough LLP
SUNRISE, Fla., Dec. 12, 2022 (GLOBE NEWSWIRE) -- 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/.