Do You Know Where Your Warranty Is?

This is the press release for US Fidelis when they decided they collected enough money and then decided they were not going to stick around to pay the claims!!!

On March 1, 2010 US Fidelis filed a Chapter 11 Bankruptcy Petition in the United States Bankruptcy Court for the Eastern District of Missouri.

Upon filing of the chapter 11, US Fidelis assumed the role as the “debtor in possession” meaning that it continues to run its business without a bankruptcy trustee. US Fidelis will remain in Chapter 11 until it confirms a chapter 11 plan or if the case is dismissed or converted to chapter 7. Chapter 11 is typically used to reorganize a business. However, not all chapter 11 debtors reorganize. In fact, many use Chapter 11 to find a way to sell its assets or liquate its business.

The Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a bankruptcy trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee. These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U.S. trustee such as monthly operating reports.

To perform these duties, the company has appointed Scott Eisenberg, Managing Partner of Amherst Partners, to serve as the Chief Restructuring Officer. Amherst Partners provides numerous services including the provision of turnaround and restructuring assistance to distressed companies. See: www.amherstpartners.com.

For more details about bankruptcy, please visit the Eastern District of Missouri US Bankruptcy Courts website by following this link.

Chapter11 Updates
(March 02, 2010) If you have cancelled your Vehicle Service Contract and are seeking a refund, please understand that your contract is not with US Fidelis, it is with a third party administrator who is not a party to the bankruptcy proceedings. US Fidelis has agreements with each of these administrators, and some of those agreements state that when a customer cancels US Fidelis will reimburse the administrator for part of the amount refunded to the customer. The US Fidelis bankruptcy may impact the company’s ability to meet that obligation to the administrator, but that should not affect, alter, or limit whatever contractual duties the administrator has to the customer to provide a refund. However, if you believe you have a claim directly against US Fidelis you may file that claim with United States Bankruptcy Court for the Eastern District of Missouri. You may visit the Court’s website for the proper claim form by following this link. To file a repair claim, contact your administrator. The filing of the Chapter 11 does not directly impact your contract in way or your ability to receive the benefits that you are entitled to.

Have you been trapped in this situation?

Remember don't blame the product because of the actions of one administrator!