BANKING & FINANCE - June 20, 1992

Executive Life Appeal Date Set: The 2nd District Court of Appeal in Los Angeles announced it will hear oral arguments Aug. 12 in a case related to the rehabilitation of Los Angeles-based Executive Life Insurance Co. The appeal, which should settle whether holders of municipal bonds backed by Executive Life policies should be treated as policyholders or general creditors of the company, was instigated by California Insurance Commissioner John Garamendi. Garamendi, who contends the holders of so-called muni-GICs are mere creditors, had lost a lower court decision on the issue, which now seems to be the primary stumbling block delaying Executive Life’s sale to a group of French investors.