Monarch wants Penn Treaty to consider alternatives

By Lisa Kerner

Charlotte, N.C., Oct. 29 - Penn Treaty American Corp. investor Monarch Activist Partners, in an Oct. 29 letter to the company's board, made public its displeasure at Penn Treaty's failure to file its Dec. 31, 2006 form 10-K in a timely manner.

The letter was included in a schedule 13D filing with the Securities and Exchange Commission and is a follow up to the investor's June 8 letter regarding the filing.

"Due to continued delays in filing the company's GAAP financials, as well as the recently announced restatement of prior earnings, we believe it is time for Penn Treaty's board of directors to immediately hire an investment banker to explore strategic alternatives, including the potential sale of the company," the letter stated.

Monarch believes the company's shares are worth at least $10 each.

With the resignation of chairman Gary Hindes, Monarch would like to see the vacancy filled by a company shareholder and said the board should be reconstituted with "shareholder friendly" directors.

Monarch reportedly owns less than 5% of the Allentown, Pa.-based long-term care insurance provider.

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