Richmond, Virginia. On May 14, 2009, the bankruptcy court granted the motion filed by LandAmerica 1031 Exchange Services, Inc. (“LES”) seeking the approval of a litigation/mediation protocol (the “Mediation Protocol”).
The Mediation Protocol provides a framework to resolve many of the remaining issues present in LES’s bankruptcy case. The Mediation Protocol would have LES and the two statutory creditors’ committees litigate and then mediate the $65 million intercompany obligation, with mediation to occur no later than June 12, 2009. As you may recall, LandAmerica Financial Group, Inc. (“LFG”) alleges that they have a claim for $65 million against LES based on a series of intercompany funds transfers.
The Mediation Protocol also provides for mediation between LES, the Committees, and the Lead Case Plaintiffs regarding global settlement of the Lead Cases and liquidation of LES, with mediation to occur no later than July 1, 2009.