The settlement calls for Travelers, based in St Paul, Minnesota, to pay the $449 million into an escrow account, which will be distributed along with any investment income at the conclusion of the bankruptcy, according to Gilbert Randolph L.L.P., the Washington law firm representing ACandS. In a statement issued Monday, Gilbert Randolph said the settlement paves the way for the Lancaster, Pa.-based company to emerge from bankruptcy reorganization.
Travelers had said when the settlement was initially announced in July that it expects to obtain $84 million from its reinsurers and that it will fund the remaining $365 million from existing reserves.