From Law360
The company, along with co-sponsor Wolfgang Holdings LLC, exited with bare-bones resources that include remaining proceeds from $516,000 in debtor-in-possession lending provided by Triad DIP Investors LLC, as well as new management.
"The reorganized debtor intends to use its existing business structure to create a broad based insurance and investment platform," the company said in its Chapter 11 disclosure statement. It added that the reorganized company and Wolfgang "believe the company's insurance holding company platform make it uniquely suited to make profitable investments in insurance assets as well as other financial and business assets."
The plan provides for the payment of all creditors using the proceeds of the company's DIP loan, although payments for administrative expenses, including attorneys' fees, were drastically reduced through negotiation from more than $5 million to about $300,000 under the plan.
The emerging business is expected to seek partnerships with private equity investors, family offices and corporate operators to acquire operating assets and financial investments, according to the disclosure.
The plan's supporters are Triad and Wolfgang Holdings, whose sole member is Chris Manderson, a member of Triad DIP Investors. RaS II Ltd., an entity in which Triad CEO William T. Ratliff III has a controlling interest, is also a member of Triad DIP Investors, with members of Ratliff's immediate family making up the other partners in RaS II Ltd.
