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Legal Coverage Group Bankrupt

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Privately-held Legal Coverage Group LTD. (LCG, Ltd.)  filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Eastern District of Pennsylvania, case number 18-10494. The Company is based in Bala Cynwyd, PA and headed by Gary Frank as C.E.O. It is represented in bankruptcy proceedings by Lawrence C. McMichael of Dilworth Paxson LLP.

LCG, Ltd. was named “The 2017 American Business Awards Company of the Year.” According to the Company’s website, “LCG, Ltd., the exclusive provider of the HELP Legal Plan, was founded in 1995 with the singular goal of modernizing and ultimately perfecting the concept of the employee legal plan.” Additionally, “For the past 20+ years, LCG has represented a new thinking in the legal plan industry. A culture driven and community minded corporate environment has propelled our groundbreaking levels of worksite and enrollee retention.”

According to documents filed with the court, “he Debtor’s need to reorganize under Chapter 11 was precipitated by a combination of the Prudential litigation, the Debtor’s need to access significant additional capital in order to maintain its growth strategy, and the Debtor’s need to close a refinancing transaction currently in contemplation.”

The Company cites estimated assets at $100 to $500 million, with estimated liabilities at $10 to $50 million.

Read more LCG bankruptcy news.