London reinsurer Global General and Reinsurance Co. filed for bankruptcy protection Monday morning under Chapter 15.
In its filing with the U.S. Bankruptcy Court for the Southern District of New York in Manhattan, the company listed assets and liabilities of more than $100 million.
Chapter 15, enacted with the change of the Bankruptcy Code in 2005, protects foreign companies from U.S. lawsuits and claims by creditors while they reorganize in other countries.
The company ceased underwriting and went into run-off in 2002. When insurance or reinsurance companies enter into run-off, they cease writing new business and seek to settle claims of their insureds.
Simon Brincklow, a foreign representative for the company’s main proceedings in the High Court of Justice of England and Wales, said the British court approved a scheme of arrangement for some of its businesses on Jan. 28.
Typically, a run-off of an insurance or reinsurance company will take 20 or more years to complete, Brincklow said in court papers, the scheme of arrangement will help reduce that time frame.
Chadbourne & Parke is the U.S. counsel for Global General. Robert Drain is the presiding judge.