Los Angeles County - News from Dec. 12, 1994
From Times Staff and Wire Reports
Appeal Court to Ponder Executive Life: A State Appeal Court in Los Angeles has scheduled a three-hour hearing Wednesday on issues growing out of the seizure and rehabilitation of the former Executive Life Insurance Co. Among the issues to be heard are whether the $3.25-billion sale of Executive Life’s then-depressed junk-bond portfolio ought to be rescinded. The 1991 sale, to a French group led by the Altus Finance unit of Credit Lyonnais bank, has been second-guessed ever since because after the junk-bond market revived, the portfolio’s value has jumped by as much as $2 billion. Some of the failed insurer’s policyholders argue that a share of those profits belong to them.
