BrokerageIndustry News

LandAmerica scrambling for cash

Analysts voice bankruptcy concerns
Published on Nov 24, 2008

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LandAmerica Financial Group Inc. faces "serious liquidity constraints" now that rival Fidelity National Financial Inc. has backed out of a deal to acquire the troubled title insurer, analysts at Fitch Ratings said in slashing LandAmerica's debt rating and the insurer financial strength ratings of its subsidiaries.

LandAmerica, which reported a $599.6 million third quarter loss, has breached its covenants on $250 million in bank debt, and can't access $290 million invested in auction-rate securities as part of its 1031 exchange business, Fitch analysts said.

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