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Integrity Insurance Company was placed in liquidation by order of the Superior Court of New Jersey-Bergen County on March 24, 1987. See Notice of Liquidation for details.
Commissioner of Banking and Insurance
of the State of New Jersey
Richard L. White
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LATEST NOTICE (Posted April 1, 2014)
On March 28, 2014, the Liquidation Court approved the Estate’s motion for a winding-up order (“Liquidation Court Order”) to which there was one objection (“Objection”). The objector sought a delay so that it would have an opportunity to seek certification of an appeal to the Supreme Court of New Jersey (“Supreme Court”) notwithstanding that the Supreme Court had previously denied such certification. We are confident that this initiative will be as unsuccessful as the prior one. But rather than delay a substantial distribution of the Estate’s assets to its creditors, we agreed to encumber sufficient assets to provide for this claim in the unlikely event that (1) the Supreme Court grants certification and (2) the Supreme Court is persuaded to accept the appellant’s argument and directs the Liquidator to allow the claim.
The Estate staff has begun efforts to effect the distribution sanctioned by the Liquidation Court. We will use March 31, 2014 as the valuation date for assets available for distribution and we anticipate commencing distributions by June 1, 2014.
Click on Downloads to view 1) Order Approving Final Distribution 2) Keasby's Brief in Opposition to Motion to Close Estate 3) Reply Papers in Support of Motion to Close Estate.
NOTICE (Posted March 11, 2014)
Click on Downloads to view Integrity Insurance Company in Liquidation's December 31, 2013 Financial Statements (with supplementary information).
NOTICE (Posted March 6, 2014)
Motion to Close the Estate. Click on Downloads to view a document comprised of the following items: 1) Cover letter from Mazie Slater Katz & Freeman, LLC, 2) Notice of Motion for an Order Confirming the Final Distribution of Assets, and Closing the Estate, 3) Certification of Richard L. White in Support of Motion, 4) Amended Liquidation Closing Plan Recitals, 5) Proposed Final Distribution Formula, and 6) Order Approving the Final Distribution of Assets and Closing the Estate.
NOTICE (Posted February 11, 2014)
On January 30, 2014, the Supreme Court of New Jersey denied the motion
for certification filed by the last remaining unsuccessful appellant objector.
As indicated earlier, we will now proceed with preparing our motion for
winding-up the Estate and making our final distribution. Upon the issuance of
an enabling Court order, the timing of which is indeterminate at this time, we
will commence the final distribution of assets to eligible creditors.
NOTICE (Posted December 12, 2013)
A motion was timely filed, by the last remaining unsuccessful appellant
objector, for leave to appeal to the Supreme Court of New Jersey. All
briefs have now been filed by both parties, and we must await the Courts
decision to deny or grant the appeal.
NOTICE (Posted September 26, 2013)
On September 26, 2013 the NJ Appellate Division issued its decision in
the last remaining objection in connection with the Amended Liquidation
Closing Plan. That decision, affirming the Liquidation Court's order supporting
the Liquidator's claim disallowance clears the way, absent a successful
motion by the appellant for leave to appeal (to the Supreme Court of New Jersey),
for Integrity to prepare its motion for winding-up the Estate and making
a final distribution.
NOTICE (Posted June 25, 2013)
Since our last update, we have received favorable decisions on two of the three pending objections: one from the Appellate Division dated June 17, 2013 and one from the Supreme Court of New Jersey dated June 19, 2013. We are waiting to see if any further motions are filed on these matters by the objectors.
NOTICE (Posted May 17, 2013)
Click on Downloads to view Integrity Insurance Company in Liquidation's December 31, 2012 Financial Statements (with supplementary information).
NOTICE (Posted May 1, 2013)
On April 15, 2013, Integrity received a release from any liability to
the Federal Government under 31 U.S.C. § 3713(b), commonly referred
to as the "superpriority" statute. Under this provision of federal
law, the Federal Government takes the position that before any distribution
can be made to creditors, the Federal Government must be paid first. While
the Federal Government agreed to Integrity making interim distributions
under a prior written agreement, it nevertheless maintained its right
to superpriority of distributions. This release removes any impediment
from the Federal Government under 31 U.S.C. § 3713(b)
to a final distribution of Integrity's remaining assets.
NOTICE (Posted September 13, 2012)
Since our last update, posted February 2, 2012, we have received favorable decisions on 5 of the 8 objections that are pending against the Estate.
We are hopeful that all objections will be resolved by the first half of 2013 and that we will be in a position to calculate and file our final distribution with the Liquidation Court before the end of 2013.
NOTICE (Posted February 2, 2012)
Due to the recent resolution of several objections, we are now in a position to bring all Priority 4 non-guaranty association creditors, whose claims were allowed from September 1, 2009 to December 31, 2011, to the currently approved 70% distribution rate. Correspondence to those creditors affected by this distribution will commence in the latter part of February.
There are still 8 objecting creditors with claims at various stages of the appellate process. We are hopeful of a final resolution of these matters during 2012 and to be in a position to calculate and make our final distribution in 2013.
NOTICE (Posted December 6, 2011)
Status of the Integrity Estate
As of November 30, 2011, all claim objections presented to the Special Master have been decided. Thus far, 7 of the remaining 10 objecting creditors have appealed the Liquidation Court's approving order, and those appeals are in various stages of the appellate process. As is evident from the Estate's status report posted on July 28, 2011 (see below), forecasting the resolution of the judicial process is difficult. Currently, we expect to know the number of appeals, and the schedule of those appeals, sometime in the first quarter of 2012. At that time, we will be in a position to determine the timing of a final distribution to creditors.
NOTICE (Posted July 28, 2011)
Status of the Integrity Estate as of June 30, 2011
The Amended Liquidation Closing Plan ("ALCP") provided for all creditor claims to be valued as of June 30, 2009, to be filed by September 30, 2009, and for the Liquidator to issue Notices of Determination ("NODs") by January 28, 2010. The ALCP also afforded creditors the right to object to the NODs within 60 days of issuance. The Estate received objections from 61 creditors, which involved 163 claims. Many of the objections were able to be resolved. The unresolved objections were submitted for adjudication to a Special Master appointed by the Liquidation Court. The Special Master received briefings from creditors and the Liquidator, heard oral arguments, and rendered determinations either upholding the NOD or accepting the creditor's objection. These determinations were then submitted to the Liquidation Court for its consideration and approval, if warranted. After the Liquidation Court considered and ruled on the Special Master's determination, the parties could appeal to the N.J. Appellate Division.
As of June 30, 2011, the Special Master has heard all claim objections and is in the process of completing his determinations which we expect to be finalized by August 15, 2011. As set forth above, the losing party may challenge the determination to the Liquidation Court and then to the Appellate Division. We expect that any matters which will be appealed to the Appellate Division will be filed by November 2011. Once all appeals are filed, the Liquidator expects to be in a position to determine the timing of a final distribution to creditors.
NOTICE (Posted December 29, 2009)
The Order appointing the Honorable William C. Meehan (retired) as Special Master was signed by the Court on December 22, 2009.
NOTICE (Posted December 8, 2009)
Click on Downloads to view the November 30, 2009 motion for the appointment of a Special Master.
NOTICE (Posted October 8, 2008)
Click on Downloads to view the Appellate Division's October 3, 2008 Order.
NOTICE (Posted September 10, 2008)
Click on Downloads to view the Appellate Division's August 13, 2008 Order and Integrity's September 3, 2008 motion, asking that the Appellate Division's stay on certain distributions be reconsidered.
NOTICE (Posted August 7, 2008)
Click on Downloads to view the appeal filed with the Appellate Division of the Superior Court of New Jersey of the Amended Liquidation Closing Plan and Integrity's opposition to the motion.
NOTICE (Posted June 27, 2008)
Click on Downloads to view the order approving the Amended Liquidation Closing Plan.
NOTICE (Posted June 19, 2008)
An Amended Liquidation Closing Plan was filed with the Superior Court of New Jersey Chancery Division-Bergen County on June 12, 2008. The Amended Liquidation Closing Plan reflects the adoption of certain suggestions of creditors as follow:
The definition of Absolute Claim in Section 1.1 has been amended so that the Liquidator will accept a claim as being absolute where liability and value have been fixed in accordance with claim resolution procedures approved by a federal bankruptcy court.
Section 4.2 has been amended to include the requirement that the Liquidator respond within 120 days from the Final Claims Filing Date to each Final Proof of Claim form filed. The Liquidator may obtain from the Liquidation Court an extension of this deadline upon a showing of good cause. This section has also been amended to provide that a copy of each Notice of Determination will be sent by first class mail to the applicable guaranty association.
Section 7.3 has been amended to provide that notice will be given to the service list in the event the Liquidator files a motion with the Liquidation Court to further amend the Liquidation Closing Plan.
Section 8.3 has been amended to provide that notice will be given to the service list in the event the Liquidator petitions the Liquidation Court for instructions to disperse assets received after the entry of the order closing the Estate.
Click on Downloads to view the Amended Liquidation Closing Plan.
NOTICE (Posted May 15, 2008)
Our motion to increase the distribution rate an additional 5% on Fourth Priority Claims was approved by the Superior Court of New Jersey, Chancery Division-Bergen County, effective May 6, 2008. Distribution letters will begin to be mailed by the end of May.
NOTICE (Posted March 24, 2008)
Click on Downloads to view the Liquidation Closing Plan that was filed with the Superior Court of New Jersey Chancery Division-Bergen County on March 14, 2008.
NOTICE (Posted February 20, 2008)
Click on Downloads to view the two orders that were issued as a result of the Case Management Conference held on January 25, 2008.
NOTICE (Posted December 26, 2007)
A Case Management Conference has been scheduled for January 25, 2008 at 1:30 p.m. at the Bergen County Superior Court, Bergen County Justice Center, 10 Main Street, Hackensack, New Jersey 07601, before the Honorable William C. Meehan, P.J.S.C.
This Case Management Conference is pursuant to the Supreme Court opinion of December 13, 2007 remanding the case back to Chancery Division for further proceedings.
NOTICE (Posted December 19, 2007)
The Supreme Court of New Jersey has issued their opinion, dated December 13, 2007, affirming in part and vacating as moot in part the judgment of the Appellate Division.
The opinion is being reviewed with the New Jersey Department of Banking and Insurance and with counsel.
Click on Downloads to view the opinion.
NOTICE (Posted August 9, 2007)
Our motion for leave to appeal was granted on July 3, 2007, by the Supreme Court of New Jersey. We are awaiting the scheduling, by the Court, of a hearing date.
NOTICE (Posted April 10, 2007)
An Order was entered January 25, 2007, by the Supreme Court of New Jersey, granting American Standard Companies, Inc. leave to intervene and file an appeal of the Appellate Division's decision of October 2, 2006. Integrity Insurance Company in Liquidation filed a motion on March 28, 2007 for leave to participate in this appeal.
NOTICE (Posted November 21, 2006)
An Order was issued, dated November 21, 2006, by the Superior Court of New Jersey-Bergen County granting American Standard Companies Inc. leave to intervene and file a Pleading in Intervention with the Supreme Court of New Jersey in the matter of the Appellate Division’s October 2, 2006 opinion.
NOTICE (Posted November 2, 2006)
The Appellate Division has issued their opinion, dated October 2, 2006, reversing the approval of the Fourth Amended Final Dividend Plan previously granted by the Superior Court of New Jersey-Bergen County.
Click on Downloads, to view the opinion.