The Florida Department of Financial Services, Division of Rehabilitation and Liquidation (Department) filed with the U.S. Bankruptcy Court an objection to Patriot National’s Second Amended Joint Chapter 11 Plan of Reorganization.
The objection explains, “There can be no reasonable dispute that the Bankruptcy Code does not specifically relate to the business of insurance and that Chapter 631 of the Florida Statutes was enacted for the purpose of regulating the business of insurance. Thus, the Plan cannot invalidate, impair or supersede the FL Statutes or the Receivership Order and should include clear language confirming the same.”
In addition, “The FL Receiver objects to any provision of the Plan that could later be used to argue GIC Collateral or any other property belonging to GIC being held by the Debtors (in violation of the FL Receivership Order) was transferred to a third party free and clear of the FL Receiver’s claims. 13. Against the backdrop of the Debtors having access to GIC’s bank accounts, numerous accusations against the fiduciaries monitoring those accounts and the Debtors holding GIC Collateral, language needs to be added to the Plan confirming that no property owned by GIC is being transferred to the Reorganized Debtors, and that the FL Receiver’s claim to such property is not being affected or otherwise impaired under the Plan.”
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