CLASS SETTLEMENT: In conjunction with the Plan’s confirmation, certain VSC holders sought and obtained Bankruptcy Court certification of a class of Warranty Gold VSC holders for purposes of claim distributions under the Plan.  The class is defined as “All persons or entities that purchased vehicle service contracts from Warranty Gold (or its predecessor), which were administered by National Warranty Insurance Risk Retention Group and had not expired as of June 9, 2003.  The class also includes persons whose contracts had expired on or before that date, but who have covered repair claims that remain unpaid.”  Certification of this class was incorporated into a settlement between representatives of the class and Warranty Gold approved by the Bankruptcy Court after a Special Notice was provided to VSC holders.  Several VSC holders, including the Liquidation Trust Advisory Board members, were appointed as Class Representatives.  The class is represented by the following attorneys.

For a copy of the Class Settlement Agreement and Special Class Settlement Notice, click below.

• Class Settlement Agreement
• Special Class Settlement Notice for Vehicle Service Contract Holders

CUSTOMER CLAIMS: The last date to file general unsecured claims against Warranty Gold was May 13, 2005.  If you are a Warranty Gold VSC holder, the Plan and the Class Settlement provide that: (a) the timely filing of an individual proof of claim in the Warranty Gold bankruptcy case was required by May 13, 2005 in order to assert a Covered Repair Claim (i.e., seeking reimbursement or payment for a covered repair for any amounts claimed in excess of those, if any, reflected in the records of Warranty Gold), but (b) no individual proof of claim had to be filed in order to assert only a Refund Claim (i.e., a claim, based upon the time remaining for each individual VSC, for a pro-rata refund of contract premiums). 

A current listing of the Proposed Claim Allowances is posted, and updated as necessary, on the home page.

For claims allowance purposes, Refund Claims for valid VSC holders are based upon the time remaining on your contract as of November 11, 2003, the date Warranty Gold ("WG") filed bankruptcy.  For example, IF at the time WG filed bankruptcy you had 48 months left on an 84-month contract that cost $1,275.00, your refund claim amount will be calculated as 48/84 x $1,275.00 = $728.57.  Thus, you would be allowed a $728.57 Refund Claim.  You would then receive a cash distribution based on a percentage of the allowed Refund Claim amount.  For example, if there are funds recovered sufficient to make a 10% distribution, you would receive 10% of $728.57, or $72.86. (This example of a Refund Claim calculation is for illustrative purposes only; further, a limited number of VSC holders may also be entitled to distributions for allowed Repair Claims in addition to an allowed Refund Claim.)  We do not currently know what the ultimate distribution percentage will be.  When distributions are made, the total amount of money recovered from all sources will be divided equally among all contract holders with allowed claims - so that everyone gets the same percentage of their total allowed claim amount.

After the claims allowance process is completed, the last outstanding item will be WG's receipt of its share of the funds distributed from the Cayman Island bankruptcy of National Warranty ("NW") (http://www.nwig.com/).  WG is a creditor in the NW case (NW was WG's insurer, underwriter and administrator).  Before bankruptcy, WG sent its customer's premiums to NW for administration of the VSC program, but NW failed in June of 2003, which caused the failure of WG.  There is not a definitive answer as to when NW will payout funds to its creditors, including WG.  This is the wildcard that will determine when we will have sufficient funds for a distribution from the Warranty Gold Liquidation Trust.  The total amount of money received by WG from NW will also determine the amount of money and distribution percentage available to WG's creditors.  Right now, based upon current estimates, VSC holders could receive a dividend as high as 10%, but this figure is subject to material change based upon the amount of money WG receives from NW.