ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, August 23, 1996 TAG: 9608230054
SECTION: BUSINESS PAGE: A-13 EDITION: METRO
DATELINE: RICHMOND, VA.
SOURCE: Associated Press
Lloyd's of London was hoping for a resolution Thursday to the remaining legal challenge to its $4.7 billion restructuring plan. Instead, the federal judge hearing the case delayed his decision for a day, and two states began some serious saber-rattling.
The Colorado attorney general's office said it intends to file a lawsuit to force the British insurance underwriter to give its investors extra protections, such as allowing them to sue for future claims and requiring an independent audit of its losses.
And the New York attorney general urged U.S. District Judge Robert Payne to order that all disputes between Lloyd's and American investors be resolved in U.S. courts.
One participant in the Lloyd's legal saga, Colorado securities commissioner Philip Feigin, observed that the litigation seems neverending.
``The more and more I deal with this, the more I feel this is a financial Vietnam,'' Feigin said.
Meanwhile, Payne continued to sift through two days of testimony and boxes of exhibits in a lawsuit brought by American investors against Lloyd's of London.
The lawsuit seeks to force Lloyd's to provide investors greater financial details about their participation in a plan to rescue the insurance company. It asks Payne to issue a temporary injunction that would delay the deadline for investors' participation until the new financial details are released. Currently, investors have until Wednesday to approve or reject the plan.
Payne told attorneys earlier this week he expected to file his decision late Thursday, but he issued a brief statement saying the opinion will be issued this afternoon. He didn't explain the delay.
LENGTH: Short : 41 linesby CNB