FedNat files for chapter 11 bankruptcy protection

FedNat Holding Company, a regional insurance holding company, announced that it and certain of its wholly-owned subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Florida in order to maximize value for all stakeholders. As part of the Chapter 11 process, the company will evaluate all strategic alternatives to maximize value for stakeholders, whether that be a reorganization of its business or a sale of its assets.

The company has approximately $6.5 million of cash on hand, which will provide liquidity to support day-to-day operations during the chapter 11 process, enabling the company to operate business uninterrupted, including the timely payment of employee wages and benefits and continued servicing of customers.

As part of the reorganization process, the company will file customary “First Day” motions to allow it to maintain operations in the ordinary course. The company intends to pay its employees in the usual manner and continue their primary benefits and certain customer programs without disruption. The company expects to receive court approval for all these routine requests.