Chaucer moves to block others from Vesttoo cell bankruptcy claims

Chaucer moves to block others from Vesttoo cell bankruptcy claims | Insurance Business Canada

Reinsurance

Chaucer moves to block others from Vesttoo cell bankruptcy claims

It is looking to recoup $257 million

Reinsurance

By
Steven Byerley

Chaucer Insurance Company DAC and Chaucer Syndicates have filed a motion in the United States Bankruptcy Court for the District of Delaware, connected to the Chapter 11 bankruptcy proceedings of Vesttoo and its affiliates.

This legal action revolves around Chaucer’s request for permission to submit a late objection to certain claims against Vesttoo Bay XXIV Limited Partnership (“Bay XXIV Debtor”), which are argued to be unenforceable for voting purposes on the bankruptcy plan.

Chaucer has sought to recoup $257 million from Vesttoo.

In filed documents, Chaucer pointed out that it had an exclusive relationship with the Bay XXIV Debtor and alleged that other claims filed against it often lacked a direct relationship or justification for being enforceable.

Aon, Markel, and Clear Blue are among businesses that have sought to claim against the Bay XXIV Debtor, according to filings.

Chaucer argues some claims against Vesttoo Bay XXIV are unrelated and unenforceable

Chaucer’s argument centered on the disallowance of what it said were unrelated claims against the Bay XXIV Debtor, emphasizing the importance of maintaining the integrity of the voting process for the chapter 11 plan.

The motion set out what Chaucer alleged was the unique and segregated nature of the Bay XXIV Debtor’s business and assets, with the insurance company arguing against the inclusion of claims that could be deemed to have direct linkage or were unenforceable.

The request made by Chaucer included several reliefs, such as the authorization to file its objection late, additional time for claimants to file motions if necessary, and procedural accommodations to ensure a fair and equitable resolution of claims in relation to the bankruptcy case of the Bay XXIV Debtor.

Claims against Vesttoo Bay XXIV debtor

Claims against the Vesttoo Bay XXIV debtor, according to the motion filing, include:

Chaucer filed Claims No. 50821 and 50823 against the Bay XXIV Debtor. These claims relate to damages and liabilities arising from reinsurance transactions, reinsurance contracts, and premium payments
JPL filed Claim No. 49 against the Bay XXIV Debtor. The stated amount was $3,174,724,832.00, covering advances and reinsurance amounts across all segregated cells.
Numerous Aon Claims were filed against the Bay XXIV Debtor.
Proventus filed Claim No. 20159 against the Bay XXIV Debtor. The stated amount was $655,055,007.41, representing Proventus’s aggregate claim against the Debtors collectively.
Porch Group Inc. and Porch.com, Inc. filed Claim Nos. 50730 and 50794 against the Bay XXIV Debtor. The stated amount was $400,000,000.00 collectively.
Markel filed Claim No. 20092 against the Bay XXIV Debtor. The stated amount was $146,986,118.42.
United Automobile filed Claim No. 20240 against the Bay XXIV Debtor. The stated amount was $29,544,211.00.
Clear Blue Specialty Insurance Company, Clear Blue Insurance Company, Rock Ridge Insurance Company, and Highlander Specialty Insurance Company filed undetermined claims (Claim Nos. 50514, 50563, 50667, and 50746) against the Bay XXIV Debtor.
Confidential claimants filed undetermined claims (Claim Nos. 20249, 20278, 20282, and 50855) against the Bay XXIV Debtor.

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