Alabama-based Vesta Insurance Group announced that it has settled its claim made in 1998 under the previous directors and officers liability insurance policy issued by Cincinnati Insurance Company for $16 million in cash, and all other claims in the litigation with Cincinnati Insurance Company have been dismissed and the litigation has been terminated.
In addition, Vesta has entered into a new $30 million credit facility with First Commercial Bank of Birmingham, Ala. The agreement, which matures no earlier than June 30, 2005, replaces the previous credit facility with First Commercial.
Vesta, which previously owned 73 percent of American Founders Financial Corporation, also announced it has purchased the remaining 27 percent ownership from the minority owners for $12.9 million.
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