Vesta Insurance Group noteholders to get $1.36 million distribution

By Tali David

Minneapolis, May 21 - Vesta Insurance Group, Inc. indenture trustee Regions Bank will make a $1,363,015.44 distribution to holders of the company's 12½% senior notes due 2005 on May 21, according to a notice from the trustees to noteholders.

Regions Bank said Vesta originally issued $44,082,000 of the 12½% senior notes due 2005. The final maturity date was later extended to Dec. 30, 2008 and the interest reduced to 8%.

The payment, which will be made to noteholders of record as of May 17, will come from a $1,365,780.37 third interim unsecured claim distribution made by Vesta under its plan of liquidation.

The noteholders will receive what is left of the payment after $1,417.50 in trustee fees, $1,500 in trustee counsel fees and $4,576.20 for an expenses reserve are subtracted.

The trustee said a total of $1,002,865.50 will be applied toward principal due on the notes and $360,149.94 will be applied to interest. The payment will amount to $8.17 of interest and $22.75 of principal per $1,000 of notes.

As previously reported, the noteholders were granted a $35.28 million claim in Vesta's bankruptcy case under an amended settlement in February.

However, the company's plan trustee told Regions Bank that further distributions depend on the results of ongoing efforts to liquidate Vesta's assets.

Vesta is a Birmingham, Ala., insurance company. It emerged from bankruptcy on Dec. 26, 2007.

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