LandAmerica Financial Group has filed a plan for settling with its creditors with the U.S. Bankruptcy Court, liquidating itself in the process.
The plan says each LandAmerica subsidiary will settle with its own claimants and creditors, out of its own resources. The company will set up liquidating trusts, and will reserve between $2.5 million and $5 million in cash to fund trust activities, which will include legal action against banks, brokers and other institutions that sold auction rate securities to LandAmerica.
LandAmerica, a Henrico County-based company that specialized in title insurance and other real estate-related services, has blamed the collapse of the market for auction rate securities for its bankrupty.
The plan is subject to review by the court, and approval by several classes of creditors.
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