Kansas Businessmen Offer to Purchase Brooke Corp. Assets

Two Kansas businessmen, one in banking and the other in insurance, have made an offer to purchase the assets of the troubled Brooke Insurance Corp.

In an interview with Insurance Journal, Albert Riederer, who is the Special Master appointed by the U.S District Court to oversee Brooke’s finances during pending litigation between Brooke and the Bank of New York, said “this is an offer that is subject to the approval of the Federal courts but is being offered by two business that are committed to best practices. They are honest and financially successful, enabling them to have the wherewithall to purchase the assets of Brooke.”

The pending sale to create “New Brooke Ltd LLC” encompasses all of Brooke insurance’s operations at its home office in Phillipsburg, Kan. and its Overland Park office, as well as the nationwide network of Brooke agents, a statement by Reiderer’s office said.

The transfer of ownership is a positive step for the company.

“These buyers have the impressive insurance experience and financial backing it will take to really make this work going forward and will give Brooke time to work on the financial issues that were the cause of the litigation,” Reiderer said.

Principals of New Brooke Ltd. LLC, the buyers are Lysle Davidson of Johnson City, Kan., and Terry Nelson of Long Island, Kan.

Davidson has more than 20 years of experience in the insurance industry. He founded and operates Western Shelter Insurance Inc. in Johnson City, as well as several other business interests.

Nelson brings more than 30 years of banking and business experience to the partnership. He currently serves as CEO of a vertically-integrated agriculture operation in Long Island and is vice chairman of First State Bank in Norton, Kan.

Riederer pointed out that the transaction offers opportunities for franchisees currently with Brooke.

“Nelson and Davidson intend to work with Brooke’s employees, agents and insurance companies to provide outstanding services to Brooke clients across the country,” Reiderer said..

“If the deal goes through it will good for agents, lenders and consumers,” Reiderer added.

Reiderer added that although all parties are working toward the final sale, he does not have a time frame for the completion of the sale. Litigation against the Brooke Corp. would go forward in the meantime until the company declares bankruptcy.

Topics Kansas