According to the company’s quarterly filing with the Securities and Exchange Commission, Highlands Insurance Group’s lenders have agreed to waive a default on $47.5 million of bank debt and extend its maturity to June 30.
The major subsidiaries of the troubled New Jersey-based insurer, in Texas, Wisconsin and California, are operating under the supervision of state regulators, and Highlands is receiving reduced revenues. It reported a net loss for the first quarter slightly less than $3 million, and has indicated that it is considering a Chapter 11 reorganization. (See IJ Website April 18)
Most of the loans, which are secured by the shares of Highlands subsidiaries, were due for payment on April 30. The waiver of their default gives the company additional time to consider its options.
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