Metropolitan Mortgage & Securities, Summit Securities and Metropolitan Investment Securities File for Litigation 'Freeze'
March 24 2004 - 8:14PM
PR Newswire (US)
Metropolitan Mortgage & Securities, Summit Securities and
Metropolitan Investment Securities File for Litigation 'Freeze'
SPOKANE, Wash., March 24 /PRNewswire-FirstCall/ -- On Monday, March
22, 2004, attorneys representing Metropolitan Mortgage &
Securities Co., Inc., Summit Securities, Inc. and Metropolitan
Investment Securities, Inc. (collectively, the "Debtors") filed a
complaint in the U.S. Bankruptcy Court for the Eastern District of
Washington, seeking a stay of pending and future litigationagainst
the Debtors and their subsidiaries and their respective directors
and officers (collectively, the "Insureds"). "This action was taken
first in order to preserve the proceeds of the Insureds' directors'
and officers' liability insurance policies and professional
liability insurance policies (the 'Policies')," said Ford
Elsaesser, outside counsel to Summit Securities, adding, "the
insurance coverage represents a valuable asset of the Debtors'
bankruptcy estates that will potentially be reducedto the extent
that funds are expended to defend these matters." Elsaesser further
pointed out that "Debtors' officials feel the insurance proceeds
should be preserved as part of the assets available to all
claimants whose claims are valid and insured by the Policies.
During the bankruptcy process, the Debtors are hopeful that
outstanding civil litigation implicating the Policies can be
consolidated to further reduce costs and ensure an equitable
distribution to prevailing claimants." According to Douglas
Siddoway, a Randall & Danskin attorney working with the
Creditors Committee for Metropolitan Mortgage, the Committee
supports the filing "in order to preserve this bankruptcy asset."
This press release contains statements that are forward-looking
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and the actual results could
differ materially as a result of known and unknown risks and
uncertainties, including; the outcome of the Chapter 11 process;
current and future litigation concerning the Company; the outcome
of discussions with the Company's creditors; general economic
conditions; future trends and other risks, uncertainties and
factors disclosed in the Company's filings with the Securities and
Exchange Commission. Finally, there may be other results not
mentioned above or included in the Company's SEC filingsthat may
cause actual results to differ materially from those projected in
any forward-looking statement. You should not place undue reliance
on any forward-looking statement. The Company assumes no obligation
to update any forward-looking statement as a result of new
information or developments, except as may be required by
securities laws. DATASOURCE: Metropolitan Mortgage & Securities
Co., Inc. CONTACT: Mary K. Keller, Assistant Vice President of
Metropolitan Mortgage & Securities Co., Inc., +1-509-835-2811,
or Web site: http://www.metmtg.com/
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