Metropolitan Mortgage & Securities Co., Inc. Acknowledges Action by Washington Insurance Commissioner, Will Reexamine Reorganiza
06 March 2004 - 10:31AM
PR Newswire (US)
Metropolitan Mortgage & Securities Co., Inc. Acknowledges
Action by Washington Insurance Commissioner, Will Reexamine
Reorganization Options SPOKANE, Wash., March 5 /PRNewswire/ --
Metropolitan Mortgage & Securities Co., Inc. today acknowledged
action taken this week by the Washington State Office of the
Insurance Commissioner (the "OIC") to initiate a voluntary
rehabilitation of, appoint a receiver for, and assume control of
the Company's wholly owned subsidiary, Western United Life
Assurance Company ("WULAC"). Since December 2003, the OIC has been
engaged in supervising WULAC. "We understand that the Commissioner
took this action to ensure the financial protection of WULAC," said
William A. Smith, Metropolitan's Chief Financial Officer. "We
believe that the OIC's actions are taken to protect WULAC's
policyholders and annuitants." On February 4, 2004, Metropolitan
filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
Metropolitan's wholly owned subsidiary, Western United Holding
Company, which is the direct parent of WULAC, was not included in
that filing and have not sought bankruptcy protection. The actions
of the OIC did not result in an immediate change of that company's
management team. Nevertheless, these actions mayaffect
Metropolitan's ability to effect a reorganization and has caused
the Company to consider other options besides the previously
announced debt-for-equity reorganization. Metropolitan remains
committed to fulfilling its obligation to maximize the value of the
bankruptcy estate for the benefit of the Company's creditors. This
press release contains statements that are forward-looking within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of1934. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and the actual results could
differ materially as a result of known and unknown risks and
uncertainties, including: the outcome of the voluntary
rehabilitation and receivership; the outcome of the Chapter 11
process; current and future litigation concerning the Company; the
outcome of discussions with the Company's creditors; general
economic conditions; future trends and other risks, uncertainties
and factors disclosed in the Company's filings with the Securities
and Exchange Commission. Finally, there may be other results not
mentioned above or included in the Company's SEC filings that may
cause actual results to differ materially from those projected in
any forward-looking statement. You should not place undue reliance
on any forward-looking statement. The Company assumes no obligation
to update any forward-looking statement as a result of new
information or developments, except as may be required by
securities laws. DATASOURCE: Metropolitan Mortgage & Securities
Co., Inc. CONTACT: Bill Smith, Chief Financial Officer of
Metropolitan Mortgage & Securities, Co. Inc., +1-509-835-2811
Web site: http://www.metmtg.com/
Copyright