Frontier Insurance Group Inc. announced it has filed with the U.S. Securities and Exchange Commission for voluntary Chapter 11 bankruptcy protection in the Southern District of New York in Poughkeepsie.
The Rock Hill, N.Y.-based company, parent of Frontier Insurance Company, in rehabilitation, said in a statement that it filed July 5 for the voluntary protection.
Frontier said it intends to "file a plan of reorganization and re-emerge from the Chapter 11 proceeding."
Chairman Jerry Goldress stated, "While there is still much work to be done, we believe [the] action is a further step in resolving the challenges presented by our financial situation. Seeking protection under Chapter 11 provides an opportunity to restructure for the benefit of all our stakeholders."
Frontier said its subsidiaries are not part of the Chapter 11 proceedings. Operations at Frontier Insurance Company, which was voluntarily placed in rehabilitation in New York, August 2001; Medical Professional Liability Agency, Ltd.; Spencer Douglas Insurance Agency Inc.; Pioneer Claim Management Inc.; Western Indemnity Insurance Company, in liquidation in Texas; and Regency Financial Corp are expected to continue unchanged and "unaffected by the company's Chapter 11 proceeding," the company said.
A.M. Best Co. downgraded Frontier Insurance Company's financial strength rating of C-minus (Weak) to E (Under regulatory Supervision) in 2001 as the result of the company's agreement with the New York insurance commissioner in August 2001 to enter voluntary rehabilitation.
Frontier Insurance Group Inc. was incorporated in Delaware in 1986.
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