Hindes Rejoins Penn-Treaty Board
NEW YORK, Nov. 9, 2012 /PRNewswire/ -- Gary Hindes, Chairman of The Delaware Bay Company LLC, has rejoined the board of directors of Penn Treaty American Corp. (OTC: PTYA). The announcement was made in an 8K filing by Penn Treaty with the Securities and Exchange Commission. As of September 30, 2012, Mr. Hindes was the company's largest shareholder, exercising sole voting power over approximately 9.9 percent of its common stock.
Penn Treaty American Corp. is the parent company of three long-term care ("LTC") insurance companies based in Allentown, PA and was founded in 1972 by industry pioneer Irving Levit. Hindes was first elected to the board in 2002 and replaced Levit as chairman upon the latter's retirement the following year. Hindes resigned from the board in 2007 when an investor in a private investment partnership which he then managed imposed a requirement that he not serve on any public-company boards.
Concurrent with the financial crisis of 2008, Penn Treaty lost a key re-insurance contract which had theretofore allowed it to "lay off" a major portion of the risk involved in connection with its issuance of LTC policies. Consequently, the company found itself undercapitalized. Due to the inability to secure replacement capital during the crisis, the company entered into voluntary rehabilitation in January 2009 and was placed under the control of the Pennsylvania Department of Insurance. However, rather than rehabilitating the companies, the department sought to liquidate them instead and petitioned the Commonwealth Court of Pennsylvania for approval to do so. Penn Treaty and its chairman, Eugene Woznicki, objected and in May of this year, the court denied the department's request, ordering it to submit rehabilitation plans in collaboration with Penn Treaty and Mr. Woznicki. The parties are now working together on developing a formal Plan of Rehabilitation.
The Delaware Bay Company, LLC is a private investment management company headquartered in New York City. It serves as the general partner of Delaware Bay Corporate Recovery Partners, LP, a private fund which invests in the publicly-traded securities of distressed and bankrupt companies.
STYLE NOTE TO EDITORS: The name of our firm is 'The Delaware Bay Company, LLC', with 'The' in front and 'Company' spelled out.
SOURCE The Delaware Bay Company, LLC