GRAND CAYMAN, Cayman Islands, Sept. 13 /PRNewswire/ -- In a lengthy
judgment issued and filed on September 7, 2000, the U.S. Court of Appeals for
the Tenth Circuit (Tenth Circuit) let stand all judgments and rulings of the
U.S. District Court for the Western District of Oklahoma (Trial Court) in a
lawsuit involving Chandler Insurance Company, Ltd. (Nasdaq: CHANF) and certain
of its affiliates (Chandler) and CenTra, Inc. and certain of its affiliates
(CenTra).
Following a 1997 trial, CenTra appealed several decisions of the Trial
Court including:
1. The Trial Court's order that CenTra relinquish ownership of 1,142,625
Chandler shares in exchange for payment of the price it paid for the
shares;
2. The Trial Court's refusal to award prejudgment interest to CenTra
based upon the value of shares ordered returned to Chandler;
3. The Trial Court's dismissal of CenTra's claim against a subsidiary of
Chandler, National American Insurance Company (NAICO), and certain
officers of NAICO based upon an alleged wrongful cancellation of
insurance policies NAICO issued to CenTra;
4. The Trial Court's refusal to award attorney's fees and costs;
5. The Trial Court's refusal to allow CenTra to assert additional claims
against Chandler and certain of its officers and directors.
The Tenth Circuit also affirmed judgments on two claims in favor of CenTra
against seven present and former Chandler officers and directors for $1 each
on each claim. Derivative claim judgments in favor of Chandler's subsidiary,
Chandler (U.S.A.), Inc. against certain present and former directors of
Chandler totaling approximately $736,000 were also affirmed.
None of the parties have indicated whether they will request rehearing or
a review of the Tenth Circuit's decision by the U.S. Supreme Court.
An earlier order of the U.S. District Court for the District of Nebraska
(Nebraska Federal Court) had ordered that all CenTra's Chandler holdings must
be divested. On November 3, 1999, the Nebraska Federal Court adopted a
divestiture plan proposed by NAICO that allowed Chandler to purchase, at
CenTra's cost, all CenTra owned shares except the 1,142,625 shares subject to
the September 7th Tenth Circuit order. The Nebraska Federal Court will
consider the divestiture of these remaining shares based upon proposals
submitted by NAICO and CenTra.
Cautionary Statement
Some of the statements made in this news release, as well as statements
made by the company in periodic press releases, oral statements made by the
company's officials to analysts and shareholders in the course of
presentations about the company and conference calls following earnings
releases, constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
such as subsequent court rulings or other developments in the ongoing
litigation described above.
For further information on Chandler Insurance toll-free via fax, dial
1-800-PRO-INFO, follow the voice menu prompts ands enter the company code 032
on any touch tone phone or visit the Chandler page on FRB's web sit at
http://www.frbinc.com
SOURCE Chandler Insurance Company, Ltd.
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Related links:
http://www.frbinc.com
CONTACT:
Steve Butler, V.P. Administration for
Chandler Insurance (Cayman), 345-949-8177, or R. Patrick Gilmore,
General Counsel for Chandler Insurance (USA); or general
information, Mike Arneth of The Financial Relations Board,
312-640-6734, email, marneth@frb.bsmg.com, for Chandler Insurance
Company, Ltd.
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