An entity that showed an interest in acquiring Penn Treaty American Corp. has let the exclusivity period for a non-binding letter of intent expire, Penn Treaty says.
Penn Treaty, Allentown, Pa., had agreed to sell the potential buyer a majority interest in its Penn Treaty Network America Insurance Company subsidiary and almost all of its other operations.
Penn Treaty recently moved the deadline for the deal to Feb. 28, from Feb. 13, but apparently has been unable to complete the deal.
The letter of intent was signed Dec.15, 2008.
Because Penn Treaty has not put a deal in place by the letter-of-intent expiration date, Penn Treaty will continue to be in rehabilitation with the Pennsylvania Insurance Department, which took control of the company in January.