Queensway takes survival action

Specialty risk underwriter Queensway Financial Holdings Ltd. (TSE: QFH) has secured liquidation windup orders for its troubled U.S. subsidiaries Queensway Casualty Insurance Co. (QCIC) and International Indemnity Co. (IIC). Queensway recently disclosed a major financial loss primarily as a result of its Florida-based QCIC operation.

The insurer says that both the Florida and Georgia departments of insurance have obtained court orders for the liquidation of QCIC and IIC. Queensway has now fully divested its interests in Florida’s commercial auto liability market. A statement released by the company states that its commercial insurance interests in the U.S. will continue to be underwritten by the Queensway International Indemnity Co. (QIIC) based in Jacksonville, Florida.

Queensway says its senior lenders Trilon Financial Corp. and Comerica Bank have also agreed to extend the company’s debt facility repayment date from the beginning of February this year to the end of that month. “Management continues to pursue alternative means of extending, refinancing or repaying the senior debt facility. These alternatives include the sale of certain assets,” a media statement says.