PMI Group Inc. filed for bankruptcy protection after the mortgage insurer lost a court bid to undo the takeover of PMI Mortgage Insurance Co. (MIC), its main unit, by Arizona regulators.
The company based in Walnut Creek, California, listed assets of $225 million and debt of $736 million as of Aug. 4 in a Chapter 11 petition filed today in U.S. Bankruptcy Court in Wilmington, Delaware.
Arizona Director of Insurance Christina Urias took control of the PMI unit last month on an interim basis and directed claims to be paid at 50 cents on the dollar after losses on mortgage defaults drained capital.
The Arizona regulator’s “action in seeking receivership of MIC, among other things, has led the debtor to seek bankruptcy protection in order to maximize value for its estate and creditors,” L. Stephen Smith, PMI’s chief executive officer, said in court papers.
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