AICI Capital Trust 9% Pfd (fka AICPQ)

[Olmsted]

Forgive me for the uninformed question but I've lost track of this one.

A while ago we had bandied about recoveries in the $2M - $10M range as the insurance book ran off (based on trustee estimates). And that the $17M Granite claim, if senior to the trust preferreds, would take that entire recovery leaving nothing for AICPQ holders.

Well now Continental owns the Granite claim which has been settled for $11M. Still more than what the trustee was estimating as the runoff.

Good to have resolution, but isn't this bad news? Unless I'm missing something. Quick read of the b/s shows not much in terms of assets (with an allowance on the surplus note) or liabilities (litigation claims were mostly Granite, and the $116M unsecured debt is primarily us, the trust preferreds).