Collateral news

While disagreements over a consolidated approach to liquidating the Vesttoo bankruptcy estate, versus a more segregated approach that makes assets available to the cedents involved in certain reinsurance deals, continues, the Official Committee of Unsecured Creditors have now accused Chaucer of “lying in wait” before launching efforts to secure value for itself.

Insurtech Vesttoo, the company at the heart of a scandal over fraudulent reinsurance letters of credit (LOC), has called for its ongoing US Chapter 11 bankruptcy case to be dismissed and for insolvency proceedings to be commenced in Israel in its place.

As the Vesttoo bankruptcy case continues in the Delaware court, it’s apparent that a difference of opinion that emerged near the beginning of the saga, over ownership of segregated cells and their contents, remains the key issue of disagreement between a range of creditors and parties involved.

Porch Group, owner of a homeowners insurer that found a letter of credit (LOC) backing its reinsurance deal with insurtech Vesttoo was forged, has agreed a $30 million strategic arrangement with broking giant Aon that includes releasing all claims related to the fraud it had against the broker.

Having recently filed to appear as a creditor in the Chapter 11 bankruptcy case of Vesttoo, international specialty insurance and reinsurance group Chaucer is now looking to protect the specific segregated cells that were used for its reinsurance transactions with the insurtech, against any leakage of value to claims made by other creditors to the […]

International specialty insurance and reinsurance group Chaucer plc, part of the China Re group of companies, has formally entered the Vesttoo bankruptcy case, filing its appearance soon after having registered a $257 million claim under the court process.

The Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of insurtech Vesttoo have objected to broking group Aon being allowed multiple votes on the proposed plan of bankruptcy, while also saying claims from equity holders in certain Vesttoo structures should be denied votes completely.

Insurance and reinsurance broking giant Aon has been given an extended time-frame to respond to the complaint filed against it in the New York Supreme Court by fronting specialist Clear Blue Insurance, in relation to the reinsurance letter of credit (LOC) fraud perpetrated by insurtech Vesttoo.

As the saga over Vesttoo moves rapidly towards the insurtech’s bankruptcy and liquidation, while the amounts available to claimants in the Chapter 11 case are minimal compared to the damage caused by the fraud that occurred, there are a range of administrative efforts still needed, one of which is the shuttering of investment fund structures […]

The plan of reorganisation under Chapter 11 for the bankruptcy of beleaguered insurtech Vesttoo has been conditionally approved by the Delaware court judge and can now go to a vote, but documents show that the eventual recovery for unsecured creditors may be minimal.