First Capital Holdings Corp

Virginia OKs Plan for First Capital Unit: Hartford Life Insurance Co. will take over the business of Fidelity Bankers Life Insurance Co., a Virginia-based subsidiary of troubled First Capital Holdings Corp., under a plan approved by the Virginia State Corporation Commission.

Creditors of failed First Capital Holdings Corp. will receive $80 million plus interest under a lawsuit settlement with former directors and officers of the company and its former controlling shareholder, Shearson Lehman Bros. Inc.

The ground shook the day after Robert Weingarten, then chairman of First Capital Holdings Corp., told a small group of insurance agents that E. F. Hutton Life Insurance would be renamed First Capital to reflect its newfound ownership by the fast-growing Century City firm. Now, four years later, some agents regret that they didn't recognize the Whittier earthquake as an omen.

Virginia OKs Plan for First Capital Unit: Hartford Life Insurance Co. will take over the business of Fidelity Bankers Life Insurance Co., a Virginia-based subsidiary of troubled First Capital Holdings Corp., under a plan approved by the Virginia State Corporation Commission.

Creditors of failed First Capital Holdings Corp. will receive $80 million plus interest under a lawsuit settlement with former directors and officers of the company and its former controlling shareholder, Shearson Lehman Bros. Inc.

First Capital Holdings Corp. of Beverly Hills and Acadia Partners, a Ft. Worth investment group that includes billionaire Robert M. Bass, on Thursday announced a new bid for First Capital's Virginia-based insurance subsidiary, Fidelity Bankers Life Insurance Co.

Insurance regulators said Monday that they have agreed tentatively to sell Fidelity Bankers Life Insurance Co., a subsidiary of troubled Beverly Hills-based First Capital Holdings Corp., to ITT Hartford Insurance Group. Fidelity Bankers, which has $4 billion in assets and 184,000 policyholders nationwide, was seized by Virginia regulators last May after First Capital filed for Chapter 11 bankruptcy because of losses stemming from risky junk bond investments.

First Capital Holdings Corp., the Los Angeles-based company that sought bankruptcy court protection in May, submitted a reorganization plan Tuesday that proposes to pay off some creditors by giving them a stake in its two failed life insurance subsidiaries. The plan, which involves First Capital Life Insurance Co. in San Diego and Fidelity Bankers Life Insurance Co. in Richmond, Va., is contingent on the approval of state insurance regulators and state and federal courts.

The recent news of growing financial problems at First Capital Life Insurance Co. has prompted more customers to cash in their policies, the company and state insurance regulators said Wednesday. Tom Epstein, deputy commissioner of the California Department of Insurance, said the agency was monitoring the situation. Charles Perkins, a spokesman for the insurer, said the increase represents "a tiny portion" of First Capital policies. "Any increase is of concern, but it's manageable," he said.

First Capital Holdings Corp. said Friday that it is sharply restating its 1990 earnings, reflecting big problems in its portfolio of risky junk bonds. Separately, the Los Angeles financial services firm said it is negotiating to sell its Universal Life Insurance unit to bolster its finances. In addition, its longtime leader, Robert I. Weingarten, 49, is leaving as chairman and chief executive.

First Capital Holdings Corp. of Beverly Hills and Acadia Partners, a Ft. Worth investment group that includes billionaire Robert M. Bass, on Thursday announced a new bid for First Capital's Virginia-based insurance subsidiary, Fidelity Bankers Life Insurance Co.

Insurance regulators said Monday that they have agreed tentatively to sell Fidelity Bankers Life Insurance Co., a subsidiary of troubled Beverly Hills-based First Capital Holdings Corp., to ITT Hartford Insurance Group. Fidelity Bankers, which has $4 billion in assets and 184,000 policyholders nationwide, was seized by Virginia regulators last May after First Capital filed for Chapter 11 bankruptcy because of losses stemming from risky junk bond investments.

Creditors of bankrupt First Capital Holdings charged Wednesday in a federal lawsuit that Shearson Lehman Bros. and some First Capital officials conspired to enrich themselves at the expense of the company's shareholders and lenders. The suit, filed in U.S. District Court in Los Angeles, seeks $300 million in damages from Shearson, the New York brokerage giant, and First Capital, the parent of First Capital Life Insurance Co. and Fidelity Banker's Life Insurance Co.

First Capital Holdings Corp., the Los Angeles-based company that sought bankruptcy court protection in May, submitted a reorganization plan Tuesday that proposes to pay off some creditors by giving them a stake in its two failed life insurance subsidiaries. The plan, which involves First Capital Life Insurance Co. in San Diego and Fidelity Bankers Life Insurance Co. in Richmond, Va., is contingent on the approval of state insurance regulators and state and federal courts.

A federal judge in Manhattan on Wednesday threw out a lawsuit against Michael Milken that contended that the former junk bond dealer caused the collapse of Los Angeles-based First Capital Holdings, an insurance concern now in bankruptcy proceedings. U.S. District Judge Morris E. Lasker ruled that the civil complaint filed earlier this year against Milken by First Capital shareholders failed to make specific allegations about how Milken caused First Capital's losses.

Security Pacific Corp. and Wells Fargo & Co. reported sharply lower second-quarter earnings Tuesday because of rising problem loans, with Wells Fargo unexpectedly warning that its loan troubles could continue because of the uncertainties in the economy. While the drop in earnings for the two California banks was expected, Wells Fargo's disclosure of deeper problems surprised bank analysts and caused the San Francisco bank's stock to fall sharply.

First Capital Holdings Corp., the Los Angeles insurance holding company whose two main units have been seized recently by insurance regulators, on Monday reported a huge $770-million first-quarter loss and disclosed that it is headed for bankruptcy court. Neither the sizable loss nor the disclosure that the company will be filing soon for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code were unexpected.

Seeking to bolster the finances of First Capital Holdings Corp. to protect policy and annuity holders, California Insurance Commissioner John Garamendi met here Monday with executives of Shearson Lehman Bros. Inc. Shearson, a unit of American Express Co., holds a 28% stake in the troubled insurer, which has been struggling under the weight of a huge portfolio of high-risk, high-yield junk bonds. Shearson and its predecessor, E. F. Hutton & Co.

First Capital Holdings Corp., the Los Angeles insurance holding company whose two main units have been seized recently by insurance regulators, on Monday reported a huge $770-million first-quarter loss and disclosed that it is headed for bankruptcy court. Neither the sizable loss nor the disclosure that the company will be filing soon for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code were unexpected.