Acceptance Insurance seeks eight-month exclusivity extension to complete liquidation, claim litigation

By Caroline Salls

Pittsburgh, May 26 - Acceptance Insurance Cos. Inc. requested an eight-month extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Nebraska.

The company wants to extend its exclusive plan filing period to Feb. 9, 2007 from June 9 and the solicitation period to April 7, 2009 from Aug. 9.

According to the motion, the extension is necessary to allow the company enough time to complete its liquidation of Acceptance Insurance Co. and a takings claim against the United States of America.

The takings claim is currently in litigation, and Acceptance said that if a trial is necessary, it is likely to be held in December 2006 or in the first quarter of 2007.

Acceptance, a Council Bluffs, Iowa-based insurance company, filed for bankruptcy on Jan. 7, 2005. Its Chapter 11 case number is 05-80059.

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