Penn Treaty American Corp. says it wants to push back a deadline that affects efforts to sell most of its operations to an unnamed buyer.
Penn Treaty, Allentown, Pa., is trying to extend until Feb. 28 the exclusivity period for a non-binding letter of intent to sell the buyer a majority interest in Penn Treaty’s American Network subsidiary, the company says.
The deal would include most Penn Treaty long term care insurance policies issued after Dec. 31, 2001.
The exclusivity period, which gives the company time to finalize the terms of the sale, was originally set to end Feb. 13.
The extension request must be approved by Pennsylvania Insurance Commissioner Joel Ario.
Ario took control over Penn Treaty Network America Insurance Company and American Network Insurance Company, Penn Treaty’s two main insurance subsidiaries, in January.
The insurance subsidiaries have been on the brink of insolvency since October 2008, when a reinsurer pulled out of an agreement to back the company’s older LTC policies.
Penn Treaty says it will not identify the buyer or terms of the offer until “definitive documentation is completed.”