The PMI Group Inc. announced last week that it has filed for Chapter 11 bankruptcy protection. In a statement, the company said the filing was due to the Arizona Department of Insurance's seizure last month of the company's PMI Mortgage Insurance Co. subsidiary.
PMI says it intends to use the Chapter 11 process to assess its strategic options for preserving stakeholder value in light of the actions taken by the Arizona regulator. None of PMI's subsidiaries commenced Chapter 11 proceedings, and PMI will continue to operate in the ordinary course of business as ‘debtor in possession’ under the bankruptcy court's jurisdiction.
In connection with the bankruptcy filing, PMI says its $685 million of senior unsecured notes and approximately $51.5 million of junior subordinated unsecured notes have become due and payable. The noteholders' ability to seek remedies and enforce their respective rights under the indentures applicable to the notes has been stayed as a result of the bankruptcy filing, PMI says.