Recently, a New York state court gave the New York Liquidation Bureau ("NYLB") permission to notify more than 300,000 creditors of Union Indemnity Insurance Company (“Union Indemnity”) that it plans to make the first distribution from the insolvent property casualty insurer's estate. See In Re Union Indemnity Ins. Co., No. 41292/85 (N.Y. Sup. Ct., Oct. 10, 2007).
Union Indemnity has been in liquidation for more than two decades but has yet to pay a single distribution to any creditor. As of March 31, 2007, over 31,000 claims have been filed with the Union Indemnity estate, which, according to the NYLB, has more than $106 million in assets available for distribution. The court scheduled a hearing on December 18, 2007 to determine whether the distribution should be permitted and whether a bar date of November 15, 2007 should be established for presentment of all claims for "actual losses and loss adjustment expenses," other than administrative costs and expenses.