Richmond, Virginia. LandAmerica Bankruptcy Update. On July 14, 2009, mediation in the LandAmerica bankruptcy case completed with all parties present entering into an agreement. Currently, the terms reached are confidential until LandAmerica presents its Chapter 11 Plan.
The LandAmerica mediation was divided into two phases. The first phase of mediation will have LandAmerica 1031 Exchange Services, Inc. (“LES”) and the two statutory creditors’ committees (the “Committees”) litigate and then mediate the $65 million intercompany obligation, with mediation to occur on July 1st and 2nd. LandAmerica Financial Group, Inc. (“LFG”) alleges that they have a claim for approximately $65 million against LES based on a series of intercompany funds transfers.
After the first phase of mediation, LES, the Committees, and the Lead Case Plaintiffs will participate in a second round of mediation with the goals of reaching a global settlement of the Lead Cases and devising a way to liquidate LES. This round of mediation is to occur on July 13th and 14th. While nonbinding, mediation may provide resolution to LandAmerica’s 1031 exchange customers who were caught up in LandAmerica’s bankruptcy.