Kentucky Central Life (KY)
Court Grants Motion to Consolidate Litigation
In an August 31 order, the Franklin Circuit Court granted the KCL Liquidator's motion to consolidate the Mid-Central litigation with the main liquidation proceedings in KCL.
The Mid-Central case involves civil litigation filed in the Franklin Circuit Court by certain shareholders in an effort to collect approximately $12 million from the assets of Mid-Central from which they argue that they are entitled to be paid as the preferred shareholders of Mid-Central. The Liquidator has defended this claim on the grounds that the assets of Mid-Central should be consolidated into the Kentucky Central estate. The shareholders have filed a motion for summary judgment. That motion is scheduled for hearing on September 28, 1999.
Consistent with his position in this case, the Liquidator has filed a motion in the liquidation court asking for an order requiring the shareholders to adjudicate their claim in accordance with the procedures established for adjudicating claims against the estate in liquidation. There does not appear to have been any action on that motion to date. However, the Liquidator simultaneously pursued a motion in the circuit court seeking an order consolidating the civil proceedings with the liquidation proceedings. That motion was granted on August 31. As a result, the civil litigation has been procedurally consolidated before the liquidation court.
A hearing has been scheduled for September 15 for coordination of scheduling and procedural matters going forward, including the timing of additional discovery and consideration of the shareholders' pending summary judgment motion.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe Mid-Continent Life (OK)Policyholder Motion To Intervene Denied
On August 27, the Oklahoma District Court dismissed a motion to intervene in the receivership proceedings filed by a Mid-Continent policyholder. The policyholder had sought the motion to intervene for the primary purpose of participating in the bid evaluation process.
Task Force Chair - Sonya Ekart; Staff Contact - Bill O'Sullivan Consumers United (DE)Claims Hearing Scheduled
A hearing has been scheduled for October 5, in the Court of Chancery of the State of Delaware in and for New Castle County, on the Receiver's First Claim Recommendation Report. The hearing affords certain policy claimants an opportunity to have their claim heard by the liquidation court. The Receiver is recommending that certain policyholder claims be disallowed. At this time, the Receiver is not requesting that the court make any determination regarding the allowance or disallowance of guaranty association claims.
The Receiver's counsel has sent a copy of the Order to Show Cause and the claim recommendation report to the affected guaranty associations. If you have not received a copy, please contact Dana Woodward at 703.787.4118.
All guaranty associations are affected by the Consumers United insolvency except Connecticut, Hawaii, Kansas, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Puerto Rico, and Tennessee.
Task Force Chair - Peggy Parker; Staff Contact -Annual Meeting Registration Deadline
The regular registration and hotel reservation deadline for the NOLHGA annual meeting, being held October 20-22 in Indian Wells, California, is September 24th. Please submit your registrations to NOLHGA by this date to avoid the late registration fee. Also, the block of rooms at the Hyatt Grand Champions will no longer be available after September 24, and we would hate for meeting attendees to have to stay "off campus."