LandAmerica files reorganization plan; estates to be liquidated

By Caroline Salls

Pittsburgh, Sept. 10 - LandAmerica Financial Group, Inc. filed a plan of reorganization and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The company said its official committee of unsecured creditors and the official committee of unsecured creditors for its LandAmerica 1031 Exchange Services, Inc. debtor support confirmation of the proposed plan.

According to the disclosure statement, the purpose of the plan is to liquidate the company's estates to maximize recovery for stakeholders.

Treatment of creditors will include:

• Holders of administrative expense claims, priority tax claims, secured claims and priority non-tax claims will recover 100% in cash;

• Holders of the LandAmerica Exchange debtor's escrow exchange claims will recover 97% in cash;

• Holders of LandAmerica Exchange debtor segregated exchange principal claims will receive a share of a segregated cash distribution and a share of trust interests;

• Holders of LandAmerica Exchange debtor note exchange collectible claims will receive a share of a note cash distribution and a share of trust interests;

• Holders of LandAmerica Exchange debtor general unsecured claims will receive a share of an unsecured cash distribution and a share of trust interests;

• Holders of LandAmerica Exchange debtor damages claims will receive a share of series D trust interests;

• LandAmerica Exchange equity interests will be cancelled and holders will receive a share of series E trust interests;

• Holders of LandAmerica Financial general unsecured claims will receive a share of series A trust interests;

• Holders of LandAmerica Financial exchange guarantee claims will receive a share of a cash distribution if they vote in favor of the plan or will be treated as a general unsecured creditor;

• Holders of LandAmerica Financial securities law claims will receive series B trust interests;

• Holders of LandAmerica Financial equity interests will receive no distribution; and

• Holders of subsidiary debtors general unsecured claims and subsidiary equity interests will receive a share of subsidiary debtor net proceeds until paid in full.

LandAmerica, a title insurance underwriter based in Glen Allen, Va., filed for bankruptcy on Nov. 26, 2008. Its Chapter 11 case number is 08-35994.

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