Affirmative Insurance unit’s rehabilitator requests case dismissal

By Caroline Salls

Pittsburgh, March 3 – Affirmative Insurance Co.’s rehabilitator is seeking dismissal of Affirmative Insurance Holdings, Inc.’s Chapter 11 bankruptcy case, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, rehabilitator Anne Melissa Dowling, who is also the acting director of insurance of the State of Illinois, said the Affirmative debtors have no assets to reorganize or liquidate, except causes of action that were already being prosecuted before the bankruptcy filing or can be brought outside of bankruptcy after the case is dismissed.

In addition, Dowling said Affirmative’s regulated insurance subsidiaries are all under the control of state regulatory agencies, and the company’s only employee “is an officer who has no business to run and no employees to supervise.”

The rehabilitator also said the “administrative expenses of these estates appear to have ballooned to $1.4 million in just over four months, with no end in sight and no cash with which to pay them.”

Dowling is requesting a March 10 hearing.

Affirmative Insurance is a Burr Ridge, Ill.-based producer and provider of personal non-standard automobile insurance policies to individual consumers. The company filed bankruptcy on Oct. 15 under Chapter 11 case number 15-12136.

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