Neeley Incorporated Cell
Neeley Incorporated Cell (“Neeley”) was placed in liquidation on March 6, 2024, by order of the Vermont Superior Court for Washington County. The Court appointed the Commissioner of the Vermont Department of Financial Regulation as Liquidator. The proceeding is being conducted pursuant to 8 Vt. Stat. Ann. c. 145, Subchapter 3.
In ordinary circumstances, a liquidator will establish a claim filing deadline and send notice of both the liquidation proceeding and the claim filing deadline to potential creditors immediately after entry of a liquidation order. Before this could be accomplished for Neeley, however, a petition for bankruptcy relief was filed by Petersen Health Care, LLC (“Petersen”). Neeley had been formed to provide general and professional liability insurance to Petersen and its affiliates/subsidiaries such that claims under Neeley policies are necessarily claims against Petersen and therefore potentially subject to automatic stay under the Bankruptcy Code. As a result, the bankruptcy petition meant that the Liquidator was unable to give clear direction to potential Neeley creditors.
The Liquidator is seeking to consult with Petersen’s bankruptcy counsel to develop a coordinated claim determination process. If a suitable plan can be developed, the Liquidator will then establish a claim filing deadline, issue the necessary notices to potential Neeley creditors, and update the liquidation website.
Key Liquidation Documents
Petition for Order of Liquidation for the Neeley Incorporated Cell • February 15, 2024
- Affidavit of J. David Leslie, Special Deputy Commissioner
- Affidavit of Leslie Kaderavek, Marsh McLennan Agency
Order of Liquidation • March 6, 2024
Liquidator’s Status Reports
First Status Report • September 17, 2024
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Questions?
Please contact the counsel for the Liquidator – J. David Leslie of Verrill Dana, LLP by email or phone 617-951-1131.