Vesttoo news

The modified and amended Chapter 11 bankruptcy plan of liquidation for insurtech Vesttoo got its court approval late yesterday, as the Delaware judge signed off on a last minute term sheet related to settlements. But, with some objections still being raised the focus now turns to the Bermuda court for approval to proceed with constructive […]

Creditor parties in the bankruptcy of insurtech Vesttoo are much closer now to an agreement on the settlements that had provisionally been reached, as well as on the plan of bankruptcy and liquidation, so hope has emerged that sides may find a common ground and the process could then move forwards at pace.

The joint provisional liquidators (JPL’s) to the cells of the Aon White Rock SAC vehicle that were affected by the Vesttoo letter of credit (LOC) in reinsurance fraud have objected to settlements reached between bankruptcy creditors, saying care must be taken to ensure constructive trust claims are respected and those entering into settlements do not […]

Another settlement agreement has been reached between the Official Committee of Unsecured Creditors in the Vesttoo bankruptcy case and two of the affected cedents, in this case Beazley and Porch, with these cedents agreeing to support the bankruptcy plan and gaining rights to a portion of the funds held in debtor vehicle Vesttoo Bay XIX […]

The Tel Aviv District Court has dismissed insurtech Vesttoo’s initial attempt to claim damages from its two ousted co-founders and the persons that worked to source investors, who were implicated in the letter of credit (LOC) fraud scheme.

Another settlement has now come to light thanks to the mediation between Vesttoo bankruptcy creditors, with specialty insurance and reinsurance group Chaucer and the Official Committee of Unsecured Creditors agreeing a way forwards over $18.9 million of value attached to debtor entity Vesttoo Bay XXIV and importantly it appears also on a way forward for […]

The recent mediation between parties involved in the Vesttoo Chapter 11 bankruptcy proceedings has now been completed and a report from the mediator says that “several” settlement agreements have been reached, while negotiations are ongoing with other parties.

The Official Committee of Unsecured Creditors in the Vesttoo bankruptcy case has reached a proposed settlement with fronting specialist Clear Blue Insurance that sees an agreement reached on the bankruptcy plan and in relation to funds specifically held in one of the debtor vehicles, Vesttoo Bay XIV Limited.

At a Vesttoo Chapter 11 bankruptcy case hearing, counsel for the official creditor committee said that in working to identify and trace funds remaining from reinsurance transactions implicated in the letter of credit (LOC) fraud, these investigations, which are ongoing, suggest funds were drawn from debtor structures and co-mingled, then used to pay company expenses.

The creditors in the Chapter 11 bankruptcy case of insurtech Vesttoo are now trying mediation out, as a way to solve the sticking point over the consolidation of the estate, versus honouring the segregation of cell structures used for reinsurance transactions affected by fraudulent letters of credit (LOCs).