LandAmerica sets bid procedures for sale of home warranty unit stock

By Caroline Salls

Pittsburgh, April 9 - LandAmerica Financial Group, Inc. requested court approval of the bid procedures for the proposed $10 million sale of its interests in interests in home warranty operating entities LandAmerica Home Warranty Co., LandAmerica Property Inspection Services, Inc., Buyer's Real Estate Services, Inc. and Residential Property Maintenance, Inc.

According to the motion filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Virginia, Buyers Protection Group, Inc. is the stalking horse bidder.

LandAmerica said Buyers Protection's shares will be owned by Revell Fraser and the Stephens Group, LLC or Stephens Group affiliates.

Stephens Group will be the majority owner or will own the controlling interest in Buyer Protection, and Fraser will own a minority interest and will serve as a senior executive and officer of the stalking horse bidder.

In addition, the company said Fraser is currently an officer and director of some divisions of the home warranty business and is also a LandAmerica senior vice president.

Buyer Protection has paid a $300,000 deposit toward the purchase price.

If Buyer Protection is not the high bidder at auction, LandAmerica will pay it a $300,000 break-up fee and reimburse up to $200,000 of its sale-related expenses.

Competing bids are due by noon ET on May 7 and must be for at least the stalking horse bid amount and the amount of the break-up fee and expense reimbursement, plus $100,000.

All bids must include a $300,000 deposit.

LandAmerica, a title insurance underwriter based in Glen Allen, Va., filed for bankruptcy on Nov. 26. Its Chapter 11 case number is 08-35994.

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