Frontier Insurance Denied Approval Of Rehabilitation Plan

Law360, New York (May 24, 2012, 4:38 PM EDT) -- A New York state court on Thursday denied approval for a plan of rehabilitation for the insolvent Frontier Insurance Co., saying the plan did not provide for payment to all the necessary claim holders.

The court-appointed rehabilitator, the New York Superintendent of Financial Services, had proposed a plan that provided for the continued payment of holders of claims under certain Frontier insurance policies, but Judge Richard Platkin said the plan violated state law by excluding holders of claims under surety bonds.

An amendment to the New...
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