Vesta Insurance noteholders to receive $875,909 plan distribution

By Caroline Salls

Pittsburgh, July 1 - Vesta Insurance Group, Inc.'s senior notes trustee will distribute $875,909 to holders of the company's 12½% senior notes due 2005 on July 15 in connection with Vesta's plan of liquidation, according to a notice to noteholders.

Notes trustee Regions Bank said the interest rate on the notes was reduced to 8% on Dec. 30, 2008.

The noteholders were granted a $40.48 million claim in Vesta's bankruptcy case under a May 2009 settlement.

However, the company's plan trustee told Regions Bank that further distributions depend on the results of ongoing efforts to liquidate Vesta's assets and prosecute causes of action.

The July 15 payment will amount to $5.25 of interest and $14.62 of principal per $1,000 of notes held.

Vesta is a Birmingham, Ala., insurance company. It emerged from bankruptcy on Dec. 26, 2007.

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