INSURANCE
From Times Staff and Wire Reports
Judge Clears First Capital Takeover: Los Angeles Superior Court Judge Kurt Lewin approved the takeover of failed First Capital Life Insurance Co. by Pacific Mutual Life Insurance Co. of Newport Beach. State Insurance Commissioner John Garamendi had selected Pacific Mutual’s bid over three others. Creditors and stockholders of First Capital Holdings Inc., the failed insurer’s parent, complained that the proposal was too generous to policyholders. Garamendi backed a revised plan, which the judge accepted. Pacific Mutual will inject $50 million in capital into the San Diego-based First Capital, seized in May, 1991, after its junk bond-burdened parent declared Chapter 11 bankruptcy.
