Mission Insurance Has $6.4-Million Loss

Los Angeles-based Mission Insurance Group on Friday reported a second-quarter loss of $6.4 million, compared to a deficit of $41.9 million in the year-ago quarter.

However, the figure for the second quarter of 1985 includes a net loss of $35.8 million from Mission Insurance Co. and other subsidiaries that were placed under conservatorship by the state Department of Insurance during the fourth quarter of the year. The latest quarter does not include a $44.5-million loss from those subsidiaries.

The company also said that a previously announced restructuring plan is proceeding. Under that plan, a Mission Insurance Group subsidiary, Mission American Insurance, will reinsure virtually all of the direct business of Mission Insurance and its subsidiaries and would obtain virtually all of the assets of those entities.

Also under the plan, certain holders of the parent company’s senior debt will be given the option to exchange that debt for common stock of the parent and rights to purchase a newly issued preferred stock of Mission American.

Holders of the senior debt also will be given the option of receiving past-due interest in cash and receiving warrants to purchase common stock of the parent firm.