LandAmerica requests exclusivity extension to resolve remaining issues

By Jennifer Lanning Drey

Portland, Ore., July 13 - LandAmerica Financial Group, Inc. requested an extension to its exclusive periods to file a plan of reorganization and to solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The company wants to extend the exclusive plan-filing period to Sept. 15 from July 24 and the solicitation period to Nov. 15 from Sept. 22.

LandAmerica said it has been working to resolve inter-estate issues, including the treatment of intercompany transfers and allocation of contingent claims asserted by the IRS.

The company's official committee of unsecured creditors has agreed to a proposed resolution of inter-estate issues that will serve as the framework for a largely consensual plan of liquidation.

However, mediation to define the settlement entitlements of various types of LandAmerica 1031 Exchange Services customers has not yet begun.

LandAmerica said it is cautiously optimistic that its Chapter 11 bankruptcy case can be concluded in the next several months and administrative expenses associated with litigation can be curbed or eliminated in favor of more meaningful recoveries to creditors.

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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