Calabasas, Calif.-based Amwest Insurance Group Inc. stated that it is seeking the necessary regulatory approvals for two previously announced transactions. These include reaching an agreement with its reinsurer to provide multi-year reinsurance covering all inforce surety bonds at Dec. 31 2000, and for prospective surety business. In addition, the company had previously reached an agreement with its commercial bank to restructure its outstanding $13.6 million term note.
The company previously filed with the Securities and Exchange Commission a 12b-25 notice indicating it was unable to timely file its annual report on Form
10-K for the year ended Dec. 31, 2000. This was due to its inability to finalize year-end financial statements, principally relating to reinsurance arrangements. Since discussions are continuing, the company announced a further delay in the filing of its Form 10-K beyond the required April 17, 2001 deadline.
The company also stated it is continuing to work with all parties and anticipates reaching acceptable arrangements in the near term. The company cautioned there can be no assurances it will be able to successfully complete these arrangements to the satisfaction of the appropriate regulatory authorities. If this is the case, the company may become subject to regulatory intervention.
Amwest is an insurance holding company underwriting surety bonds through Amwest Surety Insurance Co. and Far West Insurance Co.