LandAmerica commingled exchangers ask for official committee representation

By Jennifer Lanning Drey

Portland, Ore., Jan. 12 - A LandAmerica Financial Group, Inc. ad hoc committee of commingled exchangers asked the U.S. Bankruptcy Court for the Eastern District of Virginia to appoint an official committee of commingled exchange participants, according to a Saturday filing.

The ad hoc committee believes funds transferred to LandAmerica under commingled exchanges are not property of the estate and should be held in a trust by the company for the exchange participants.

However, the group said LandAmerica's official committee of unsecured creditors' position is that no such trust exists.

The commingled exchangers said the company's official committee of unsecured creditors' fiduciary duty to all claimants hinders, if not prohibits, it from adequately representing their interests.

According to the motion, many, if not all, of the commingled exchangers may lose, or have lost, earnest money on deposits. Additionally, many or all will lose, or have lost, the tax benefits of the exchange.

LandAmerica, a title insurance underwriter based in Glen Allen, Va., filed for bankruptcy on Nov. 26. Its Chapter 11 case number is 08-35994.

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