ROBERT H. NUNNALLY, JR.
On the 24th day of September, 2004, this Court held the final hearing on the Motion to Authorize Closing Procedures for Enterprise Insurance Company Trust.
This Court previously granted the Insurance Commissioner's Motion to Authorize Closing Procedures, and entered its preliminary order which gave notice of this hearing.
The Court hereby GRANTS the Insurance Commissioner's Motion and ORDERS as follows:
- The Court hereby authorizes the Insurance Commissioner to retain and administer those assets set forth in the closing budget filed with this Court and apply those sums to accomplish the steps involved in closing the Enterprise Insurance Company Trust proceeding;
- The Court hereby authorizes the Insurance Commissioner to distribute to all approved policyholder class claimants, on a pari passu basis, the remaining assets of the Enterprise Insurance Company Trust available for distribution, other than those specified herein, including the closing budget;
- The Court hereby authorizes the Insurance Commissioner to distribute the shares of Danielson Holding Corporation attributable to Enterprise Insurance Company Trust to approved unpaid (or partially unpaid) claimants against Enterprise Insurance Company Trust, whether policyholder or general creditor, and authorizes use of a professional distribution firm or firms to be selected by the Insurance Commissioner to accomplish the distribution. In the event that a distribution percentage results in fractional shares being due to any claimant, then the Insurance Commissioner may distribute cash in lieu of shares as to the fractional portion of such shares, including distributions of very small amounts of fractional value. The Court finds that such a distribution will comply with the Insurance Commissioner's duty to distribute shares ratably in conjunction with the rehabilitation plan previously approved by this Court.
- Upon the distribution of the remaining assets and shares, as set forth above, this Court authorizes the closing of the Enterprise Insurance Company estate, subject to this Court's continuing jurisdiction should further unanticipated collections be received after the date of closing, or funds remain in the trust, which will necessitate a further distribution. This Court retains jurisdiction in the event that the case should be re-opened for further distributions, but otherwise the case shall be administered as closed.
- In the event that Enterprise Insurance Company Trust is entitled to further distributions from Mission Insurance Company Trust or Mission National Insurance Company Trust, the Court authorizes ans orders the Insurance Commissioner as Trustee of the Mission Insurance Company Trust and Mission National Insurance Company to make any future distributions on general creditor proof of claims to be made directly to the Enterprise Insurance Company Trust policyholder class claimants. In the event that further distributions or collections due to Enterprise Insurance Company Trust are received by Mission Insurance Company Trust, they may be treated in the same fashion as such general creditor distributions and distributed directly to the appropriate claimants.
- The Insurance Commissioner is hereby authorized to take such steps as are necessary and appropriate to close the proceedings;
- The Insurance Commissioner is authorized to file a declaration within sixty days setting forth the accomplishment of the distribution. The Insurance Commissioner, his Special Deputies, the Conservation and Liquidation Office, and his agents shall be, upon such filing, DISCHARGED from any and all claims, debts, liabilities, or duties to further account for the assets or liabilities of Enterprise Insurance Company Trust, and shall have no liability of any kind or nature for such claims or debts.
- The Court hereby ENJOINS PERMANENTLY all creditors, policyholders, equityholders, officers, directors and all other persons or entities of any type or nature from bringing, asserting, maintaining or pursuing any claim, suit, demand, offset, proceeding, arbitration, administrative proceeding or other legal process of any kind or nature against Enterprise Insurance Company, Enterprise Insurance Trust, the Insurance Commissioner as Trustee of the Enterprise Insurance Company Trust, any Special Deputy Insurance Commissioners, employees of the Conservation and Liquidation Office, agents and attorneys, and personnel of the California Department of Insurance, as to any claim arising from or related to Enterprise Insurance Company and Enterprise Insurance Company Trust. The Court further reaffirms and makes permanent each injunction the Court has entered in this proceeding. The Court further ORDERS that the distribution of assets in accordance with this and prior orders of the Court shall constitute the sole entitlement of any claimant against Enterprise Insurance Company and Enterprise Insurance Company Trust to receive any assets in partial satisfaction of their claims;
- The Court authorizes the Insurance Commissioner as Trustee of the Enterprise Insurance Company Trust to notify general creditors that other than Danielson Holding Corporation shares, they will receive no cash distribution from this trust estate. The Court expressly finds that no assets other than Danielson Holding Corporation shares remain for the distribution to general creditors.
- The Court hereby authorizes the Trustee to maintain the records of Enterprise Insurance Company Trust for three years, after which such records, may be destroyed in the Trustee's discretion.
In the event that further assets are collected by the Insurance Commissioner, the Insurance Commissioner may petition this Court for permission to re-open the case for further distributions. In addition, in the event that a guaranty association fails to return excess early access distributions to the Enterprise Insurance Company Trust, the Insurance Commissioner as Trustee of the Mission Insurance Company Trust or Mission National Insurance Company Trust may withhold such unreturned excess sums from the future distributions of those trusts to the involved guaranty associations, and pay such sum withheld to the Enterprise Insurance Company Trust.
The Insurance Commissioner as Trustee shall have the right to continue to collect any assets due to Enterprise Insurance Company Trust, and shall hold any such assets for further distribution.
In the event that any claimant fails to claim any sum or property due to that claimant, the Insurance Commissioner is authorized to follow the California statutory unclaimed property laws, and to deliver such assets in accordance and as provided in such laws.
The Insurance Commissioner is authorized, in his discretion, to permit the Enterprise Insurance Company Trust to remain open for such reasons, including tax reasons, that he deems appropriate. Subject to reserving for a closing budget, and any sums he deems necessary for tax or other sufficient reasons, the Insurance Commissioner shall distribute the remaining sums in the trust to the approved policyholder class claimants, other than those sums necessary for the closing budget.
This Court shall maintain continuing jurisdiction over Enterprise Insurance Company Trust, but this order is intended to and does end active court administration of this trust. This Court retains continuing jurisdiction to enforce the injunctions issued herein, and to hear and determine any issue which may arise upon a motion to re-open the case.
So Ordered.
Signed this 24 day of September, 2004