Penn Treaty to review alternatives including asset sale

By Lisa Kerner

Charlotte, N.C., Dec. 31 - Penn Treaty American Corp.'s board of directors will review strategic alternatives to enhance shareholder value with the assistance of Friedman, Billings, Ramsey & Co., Inc.

The alternatives could include a review of Penn Treaty's capital structure, strategic partnerships, business combination transactions or the sale of certain assets, a company news release stated.

Penn Treaty does not intend to comment further on the review process unless the board approves a transaction or other strategic alternative.

As a result of a preliminary valuation analysis, Penn Treaty believes it will be "necessary to increase claim reserves and that there may be offsetting or partially offsetting reductions in active life reserves."

The valuation analysis is expected to be completed during the first quarter of 2008.

Penn Treaty, through its subsidiary insurers, specializes in the sale and distribution of long-term care insurance products. The company is based in Allentown, Pa.

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