Captive insurance manager Arsenal Insurance Management LLC has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.
On 26 January 2023, the captives firm filed for bankruptcy at the United States Bankruptcy Court for the District of Delaware.
Affiliated companies Arsenal Intermediate Holdings LLC and Arsenal Health LLC also filed a Chapter 11 petition on the same day.
Founded in 2006, Arsenal Insurance aims to deliver customer solutions in risk management for captives, mutuals, risk retention groups (RRGs) and other insurance entities, with offices located in Alabama, Georgia, Florida, Tennessee, Texas and Vermont.
Bankruptcy laws protect troubled businesses and provide for orderly distributions to business creditors through reorganisation or liquidation.
As defined by the United States Courts: “This chapter of the Bankruptcy Code generally provides for reorganisation, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganisation to keep its business alive and pay creditors over time.”
A hearing on the debtors' First Day Motions was held on 27 January 2023, with a final hearing on certain of the First Day Motions to be held on 27 February 2023.
