Affirmative Insurance Holdings defers payments on junior securities

By Caroline Salls

Pittsburgh, Feb. 29 - Affirmative Insurance Holdings, Inc. has exercised its right to defer regularly scheduled quarterly interest payments on its junior subordinated debt securities beginning with the payment scheduled for March 15 to give the company additional liquidity, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The $56.7 million of notes are owned by two affiliated trusts and were funded by the trust's issuance of trust preferred securities.

The company said the notes terms and trust indentures give it the right to defer interest payments for up to 20 consecutive quarters unless specified defaults have occurred.

According to the 8-K, the deferral of the notes payment also results in the deferral of distributions on the trust preferred securities.

Affirmative Insurance is an Addison, Texas, producer and provider of personal non-standard automobile insurance policies to individual consumers.

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