Bankruptcy Trustee Seeks $200,000 Settlement To Pay Lender In Debtor Insurer Case

Mealey's (November 23, 2022, 9:03 AM EST) -- WILMINGTON, Del. — A Chapter 7 bankruptcy trustee for insurance company debtors moved a Delaware federal bankruptcy court to approve paying $200,000 to the debtors’ prepetition lender out of a $1.4 million global approved settlement resolving the trustee and Florida and Texas receivers’ claims against the debtors’ directors and officers (D&O claims), asserting that the payment was negotiated as part of the global settlement but that the earlier motion to approve the settlement inadvertently omitted the specific $200,000 payment request....