Tower Retrieves $5.5 Million From Kemper Insurance

Law360, New York (May 15, 2006, 12:00 AM EDT) -- Accused of improperly collecting funds, affiliates of an insurance company have been barred by a bankruptcy judge from drawing on credit owed by bankrupt Tower Automotive Inc.

Tower Automotive won the restraining order against several affiliates of Kemper Insurance, which it accused of improperly collecting $5.5 million from a previously posted letter of credit.

The affiliates are Lumbermens Mutual Casualty Company, American Motorists Insurance Company, American Manufacturers Mutual Insurance Company and American Protection Insurance Company.

Kemper was threatening to draw additional funds next week, according to...
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