NU Online News Service, March 16, 2004, 4:32 p.m. EST – Penn Treaty American Corp., Allentown, Pa., says shareholders have approved the sale of $16 million in convertible notes due in 2008.[@@]

The notes pay an interest rate of 6.25%.

Penn Treaty wants to use the cash to increase its liquidity and support its insurance subsidiaries’ anticipated sales growth.

Penn Treaty helped develop the modern LTC insurance market, but it ran into trouble in 2001 because of regulators’ concerns that its LTC insurance sales were outstripping its capital reserves. The company has been working since then to rebuild its operations and increase its capital level.