LandAmerica Financial Group emerges from Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Dec. 7 - LandAmerica Financial Group, Inc. emerged from Chapter 11 bankruptcy when its plan of liquidation took effect on Monday, according to a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

As previously reported, the official committee of unsecured creditors and the official committee of unsecured creditors for its LandAmerica 1031 Exchange Services, Inc. debtor supported confirmation of the plan.

Treatment of creditors will include:

• Holders of administrative expense claims, priority tax claims, secured claims and priority non-tax claims will recover 100% in cash;

• Holders of the LandAmerica Exchange debtor's escrow exchange claims will recover 97% in cash;

• Holders of LandAmerica Exchange debtor segregated exchange principal claims will receive a share of a segregated cash distribution and a share of trust interests;

• Holders of LandAmerica Exchange debtor note exchange collectible claims will receive a share of a note cash distribution and a share of trust interests;

• Holders of LandAmerica Exchange debtor general unsecured claims will receive a share of an unsecured cash distribution and a share of trust interests;

• Holders of LandAmerica Exchange debtor damages claims will receive a share of series D trust interests;

• LandAmerica Exchange equity interests will be canceled and holders will receive a share of series E trust interests;

• Holders of LandAmerica Financial general unsecured claims will receive a share of series A trust interests;

• Holders of LandAmerica Financial exchange guarantee claims will receive a share of a cash distribution;

• Holders of LandAmerica Financial securities law claims will receive series B trust interests;

• Holders of LandAmerica Financial equity interests will receive no distribution; and

• Holders of subsidiary debtors' general unsecured claims and subsidiary equity interests will receive a share of subsidiary debtor net proceeds until paid in full.

LandAmerica, a title insurance underwriter based in Glen Allen, Va., filed for bankruptcy on Nov. 26, 2008. Its Chapter 11 case number is 08-35994.

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