Richmond-based LandAmerica Financial Group Inc., the country’s third largest title insurer, is filing for Chapter 11 protection.
As part of the Chapter 11 plan, the company expects to sell its two principal underwriting subsidiaries, Lawyers Title Insurance Corp. and Commonwealth Land Title Insurance Company, to Fidelity National Title Insurance Company and Chicago Title Insurance Company for $298 million.
In a press release this morning, the company said it hopes that the bankruptcy court and the Nebraska Department of Insurance, which filed petitions for rehabilitation of Lawyers Title and Commonwealth on Monday, will expedite the transaction so that it can close by the end of the year.
Theodore L. Chandler Jr., chairman and CEO of LandAmerica, said he was disappointed over the need to seek bankruptcy protection but called the proposal “the best result available in this brutal real estate, credit and capital market environment.”
By Alan Cooper