Affirmative Insurance Holdings files plan of liquidation

By Sheri Kasprzak

New York, March 8 – Affirmative Insurance Holdings, Inc. filed its plan of liquidation with the U.S. Bankruptcy Court for the District of Delaware.

Treatment of creditors under the plan will include the following:

• Holders of other priority claims will be paid in full in cash;

• Holders of other secured claims will be paid in full and retain all rights;

• JCF AFFM Debt Holdings LP will receive 92% of its claim;

• Holders of general unsecured claims against Affirmative will receive a pro rata share of distributions from Affirmative’s secondary distribution sources; and

• Affirmative equity holders will receive no distribution.

A hearing on the liquidation plan is slated for May 20.

On March 3, Affirmative’s rehabilitator asked the court to dismiss the debtor’s Chapter 11 bankruptcy case, claiming Affirmative has no assets to reorganize or liquidate.

Anne Melissa Dowling, Affirmative’s rehabilitator and the acting director of insurance for the State of Illinois, also stated in her filing that the company’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.”

Dowling requested a March 10 hearing on the matter.

Based in Burr Ridge, Ill., Affirmative is a producer and provider of personal non-standard automobile insurance policies for individual consumers. The company filed for bankruptcy on Oct. 15, 2015 under Chapter 11 case number 15-12136.

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