A Missouri judge has predicted that the Transit Casualty Insurance Co. receivership will end up paying $1.2 billion to creditors when the receivership shuts down next year.
According to a Knight Ridder news service report, when Transit first became insolvent in 1985, the Missouri Department of Insurance estimated that the recovery of claims would amount to $300 million. But should Cole County Circuit Judge Byron Kinder’s prediction come true, claimants will get only about 75 percent of the amount of their actual claims
. It has been estimated that the final cost of liquidating the company would be about $340 million.
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