The companies continue to operate their businesses and manage their properties as debtors-in-possession under the jurisdiction of the U.S. Bankruptcy Court for the District of Delaware and according to applicable bankruptcy code provisions, Miix Group (OTC: MIIX) said. No creditors committee or trustee has been appointed in the case, Miix Group said.
As it disclosed earlier, Miix Group said it received "one indication of interest" from MDAdvantage Holdings Inc. to acquire some of the assets of New Jersey State Medical Underwriters and another "additional possible offer." The company said it continues to negotiate with MDAdvantage, relating to a possible sale of New Jersey State Medical Underwriters' assets, subject to receiving all necessary approvals and "higher or better offers" prior to closing.
MDAdvantage, based in Lawrenceville, N.J., is a physician-based medical professional liability insurer, according to its Web site.
The bankruptcy filing does not include Miix Insurance Co., which was placed in rehabilitation by the New Jersey Superior Court on Sept. 28, Miix Group said (BestWire, Oct. 4, 2004). The commissioner of the New Jersey Department of Banking and Insurance serves as rehabilitator, with exclusive control over Miix Insurance's business and property, Miix Group said.
"The state is taking appropriate action to assure that claims against the insurance companies will continue to be processed in due course," said Marshall McKnight, a spokesman for the New Jersey Department of Banking and Insurance, regarding the Chapter 11 filings of Miix Group and New Jersey State Medical Underwriters.
Attempts to contact Miix Group, based in Lawrenceville, N.J., were not successful.
Once the largest medical-malpractice insurer in New Jersey, Miix Group placed Miix Insurance in voluntary solvent run-off in May 2002, announcing plans to launch a new, $30 million, physician-capitalized company operating under the name Miix Advantage Insurance Company of New Jersey (BestWire, May 21, 2002).
The court's rehabilitation order for Miix Insurance does not affect Miix Advantage, a department spokeswoman said in October. "They continue to write business; they continue to operate as a player in the New Jersey marketplace," she said (BestWire, Oct. 4. 2004).
Meanwhile, the board of directors retained Traxi LLC as a financial and restructuring consultant to help Miix Group with the Chapter 11 filing and related restructuring efforts. Perry M. Mandarino, a senior managing director at Traxi, was appointed chief restructuring officer.
In June, then-New Jersey Gov. James McGreevey signed into law a medical-malpractice reform bill that reduces the statute of limitations for injuries caused at birth and creates an assistance fund for doctors, in addition to other provisions. However, the bill didn't include caps on noneconomic damages.