Second in a liquidation of a company it is all about who has lien position less legal fees. By forcing liquidation the customer value is worthless once they go out of business. So now what is left is hard assets ie land, buildings, cars…. which in this environment is especially tough.

Finally that is why liquidation should be a last resort.

Did the company have cash flow to pay claims while looking for a buyer and or new investors?

If the company had cash flow how did this help the victims? It looks like the only winners will be the lawyers.

And if the company passed on over 99% good audit of clients it would seem that a buyer would want the company and to take over the insurance clients which would have helped the policy holders.

Liquidation should be done if the book of clients has no value. It seems like this book had value.

And it even looks worse that OX called Westmoreland if OX thinks this is an criminal issue.

One more…..

http://tinyurl.com/FainandOx

Fain took Governor and top legislators on free hunting trips.

http://tinyurl.com/freetrips

1) SEUS only had less than 1% problem with claims on their audit and that is really good ratio.

2) Buying property in this market is probably smart to use as an asset since prices are low. And under the new mark to market rules many banks and insurance companies are using assets that have not been mark down via the long hold rule. I would trust an asset bought recently over an older one in most cases.

I am no lawyer but I do wonder if insurance companies that gave money to OX were held to the same standard especially competitors? And if not, I would think the state of Georgia and OX have a lot of explaining to do.

AJC…….Oxendine, a Republican candidate for governor, is investigating whether Fain hid the extent of the company’s problems on its financial reports by using fraudulent, Enron-style accounting.

“We believe this was intentional,” Oxendine said, “and that’s a crime.”…….

AJC…Meanwhile, Oxendine’s office is continuing the investigation which began last year.

“When we started the case, we were looking at, OK, Clark really did some incompetent things,” Oxendine said. “As we got further, we said we believe this is beyond incompetence and mismanagement.”
If the investigation strongly documents criminal intent, he said, “We hope to see handcuffs on Mr. Fain someday.”…

http://www.ajc.com/business/insolvent-insurer-is-focus-319843.html

Oxendine, by making sexists remarks never evolved in many respects and that is what he brings to the table, a narrow-minded view of women and unethical behavior that is self-serving. Approximately half of the state is female, many of whom are active voters, so Ox tell us how sexy and hot we are and see how many of us vote you right on out the door. We have brain power too and many of us have concluded our brain power doesn’t want you!