Based on recent court filings, we have learned that on November 26, 2008, LandAmerica Financial Group, Inc. and its subsidiary, LandAmerica 1031 Exchange Services, Inc., filed for Chapter 11 bankruptcy protection in Richmond, Virginia. The filing followed shortly after LandAmerica's proposed merger with Fidelity National Financial Inc. fell through on November 21, 2008, and after Nebraska state insurance regulators filed petitions for rehabilitation on November 24, 2008, with respect to its two principal underwriting subsidiaries, Commonwealth Land Title Insurance Company and Lawyers Title Insurance Company. The bankruptcy filing does not include any of LandAmerica's underwriting subsidiaries, including Commonwealth Land Title and Lawyers Title, because insurance company subsidiaries cannot be debtors under federal bankruptcy law and as noted, they are subject to rehabilitation proceedings in Nebraska.
Further, LandAmerica 1031 Exchange Services, Inc. ceased all new customer transactions and terminated its operations on November 24, 2008. Although documents filed in the bankruptcy case indicate that its aggregate assets exceed the total amount of funds received from its customers, due to the bankruptcy filing, LandAmerica 1031 Exchange Services may not be able to meet all of its obligations to customers as a qualified intermediary under existing exchange agreements.
The filings also provide that on December 16, 2008, LandAmerica will seek the bankruptcy court's authority to sell Commonwealth Land Title to Chicago Title Insurance Company as well as Lawyers Title and United Capital Title Insurance Company to Fidelity National Financial Inc. Due to the rehabilitation proceedings, insurance regulators will continue to oversee Commonwealth Land Title and Lawyers Title until these subsidiaries are sold. Together, these companies constitute one of the country's largest title insurance underwriters.
If you would like additional information regarding these cases or would like to discuss any potential escrow or other claim you may have against LandAmerica or one of its subsidiaries, please contact any of the attorneys listed to the right.
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