Vesttoo bankruptcy plan moves along with new court approval

Vesttoo bankruptcy plan moves along with new court approval | Insurance Business Asia

Insurance News

Vesttoo bankruptcy plan moves along with new court approval

Joint provisional liquidators’ objections withdrawn

Insurance News

By
Terry Gangcuangco

The bankruptcy plan for insurtech Vesttoo has secured further court approval.

Following the green light from the bankruptcy court in Delaware – which described the Vesttoo liquidation plan as being “in the best interest of creditors and equity holders” – the Supreme Court in Bermuda allowed the withdrawal of the objections previously made by the joint provisional liquidators (JPLs) of Aon subsidiary White Rock. The JPLs were initially opposed to parties settling out of court.

“The Bermuda court’s decision, filed with the US Bankruptcy Court for the District of Delaware, allows the JPLs to unconditionally withdraw their objections to previously proposed versions of the bankruptcy settlement plan and cedent settlements with the Official Committee of Unsecured Creditors of Vesttoo, appointed in the Vesttoo Chapter 11 case involving White Rock,” credit rating agency AM Best reported.

“The liquidators are also authorised to consent to confirmation of the plan. The liquidators are also allowed to consent to cedent settlements with the committee and JPLs for White Rock involving insurers Clear Blue, Chaucer, Beazley, Markel, and Porch.”

Last August, the Bermuda Monetary Authority (BMA) and White Rock Bermuda jointly agreed to a course of action in the Supreme Court aimed at pursuing maximum recovery for the (re)insureds hit by the Vesttoo cells fraud.

“Both parties have agreed for the Bermuda Supreme Court to appoint Charles Thresh and Michael Morrison of Teneo (Bermuda) Limited to act as joint provisional liquidators for White Rock Bermuda with respect to the impacted Vesttoo cells,” the BMA said at the time.

Vesttoo commenced Chapter 11 proceedings in the US in 2023 to protect the insurtech’s assets while the firm tried to pursue legal action against those responsible for the letters of credit fraud scandal.

Earlier this year, Delaware’s bankruptcy court said the liquidation plan and the documents included in the plan supplement provide adequate and proper means for the plan’s execution and implementation.

What do you think about this story? Share your thoughts in the comments below.