Advertisement

UniTek Global Services Insurance Agreement Approved

Advertisement

The U.S Bankruptcy Court approved UniTek Global Services’ motion for entry of an order, authorizing and approving (a) the Debtors’ assumption of certain previously expired and current insurance agreements with Zurich American Insurance Companies and (b) certain rights and protections for the insurer with respect to the insurance program. As previously reported, “In order to avoid cancellation of the Renewal Insurance Program, the Debtors must comply with the Insurer Requirements, which include, among other things obtaining entry of an order: (a) lifting of the automatic stay in order to allow the Insurer to exercise all contractual rights in accordance with the terms of the Insurance Program without further order of the Court; (b) classifying the reimbursement obligations and any other obligations under the Insurance Program as administrative obligations entitled to priority under section 503(b) of the Bankruptcy Code and exempting the Insurer from any bar date established for the filing of any proof of claim related to administrative expenses; (c) approving all collateral or security held by the Insurer and all prior payments to the Insurer under the Insurance Program as unavoidable transfers under the Bankruptcy Code and applicable state law; and (d) providing that the Debtors’ rights against all collateral held by the Insurer in whatever form shall be governed by the terms of the Insurance Program and the Debtors shall not take any action in these chapter 11 cases that is inconsistent with the terms of the Insurance Program, including, without limitation, actions for turnover or estimation. Prior to the Petition Date, the Debtors determined, in their business judgment, that it was necessary to enter into the Renewal Insurance Program in the ordinary course of business.”