Bankrupt LandAmerica Financial Group Inc. has been granted approval to sell off six more of its subsidiaries for $28.5 million, including two mortgage-related businesses to Fidelity National Financial Inc., and home warranty, home inspection and natural-hazard disclosure companies to Buyers Protection Group Inc. of Georgia.
The U.S. Bankruptcy Court for the Eastern District of Virginia on Thursday approved LandAmerica’s request to sell LoanCare Servicing Center Inc. and LC Insurance Agency Inc. to Fidelity National Financial for $16.3 million.
Fidelity last year acquired LandAmerica’s underwriting subsidiaries — Lawyers Title Insurance Corp., Commonwealth Land Title Insurance Co., and United Capital Title Insurance Co. — for $235 million, making the company the nation’s largest title insurer (see story).
LandAmerica was also granted court approval to sell LandAmerica Home Warranty Co., LandAmerica Property Inspection Services Inc., Buyers Real Estate Services Inc. and Residential Property Maintenance Inc. to Buyers Protection Group for $12.2 million.
LandAmerica filed for Chapter 11 bankruptcy protection on Nov. 26, saying the company was more than $650 million in debt and having difficulty paying creditors after a subsidiary that facilitated 1031 property exchanges invested proceeds in auction-rate securities that became insolvent.
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