BusinessBusiness RecoveryPwC takes over as Folksam collapses

PwC takes over as Folksam collapses

PricewaterhouseCoopers has been appointed administrators of Folksam International Insurance after its directors concluded it could no longer run the company on a solvent basis.

PwC partner Dan Schwarzmann was appointed administrator on 19 July 2002.

This is the first time an insurance company has been placed in administration following the introduction of new insolvency legislation on 31 May 2001.

Previously insurance companies were put into provisional liquidation instead of administration meaning the restructuring was a more drawn-out process.

As a result policyholders will probably receive some payment earlier than they otherwise would have.

Schwarzmann said: ‘As a priority I will be seeking to determine the financial position of Folksam. I will also be working with policyholders to develop a plan to enable liabilities to be paid, even if it is only part payments, at the earliest opportunity.’

PwC said it was probable that a scheme of arrangement will be proposed to creditors earlier than under the former system.

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