Sidley Secures Confirmation of AHUSCO’s Chapter 11 Plan

On September 30, 2026, the Chapter 11 plan of Alea Holdings US Company (AHUSCO) and its debtor affiliates became effective. Sidley successfully obtained confirmation of the plan on September 10, 2026, from Judge Christopher M. Lopez of the U.S. Bankruptcy Court for the Southern District of Texas.

AHUSCO — together with affiliates FIN Alea LLC and Alea Group Holdings (Bermuda) Ltd. — forms a chain of intermediate holding companies within the insurance platform of Catalina Holdings (Bermuda) Ltd. The entities, which oversee a portfolio of runoff businesses operating in New York, Connecticut, and California, filed for Chapter 11 bankruptcy protection on July 19, 2026, to address approximately US$280 million in debt, comprised of a secured, affiliate-lender prepetition credit facility and unsecured, subordinated trust-preferred securities (TruPS). The Chapter 11 cases allowed AHUSCO and its affiliates to implement a consensual discharge of these claims, pursuant to a prefiling Restructuring Support Agreement among the Debtors, the prepetition lender, and a majority of the TruPS holders.

Over the course of the cases, AHUSCO obtained court approval of previously negotiated private sales of two operating insurance subsidiaries, which helped preserve their value and protect policyholders, and obtained other first- and second-day relief without objection. Confirmation was achieved just 53 days from the petition date, with 100% of each of the voting classes voting in favor of the Debtors’ plan of reorganization and no objections filed.

The Sidley team representing AHUSCO was led by Stephen Hessler, Duston McFaul, and Ameneh Bordi (Restructuring) and included Dhevine Chandrapala, Jonathan E. Mitnick, Jacob Lester, Garrett Altman, and Noah M. Hornberger (Restructuring); Angela Fontana, Sean Damm, Reid McKinney, Paul S. George Jr., Zahra Jassemi, Chloe Smith, Eleanor Oates, and Henry Sasse (Global Finance); Nathan Enfield, Richard M. Silverman, and Peter D. Edgerton (Tax); Perry J. Shwachman, Jonathan A. Blackburn, Andrew R. Holland, James Phythian-Adams, Robert A. Ryan, Paige A. Levitt, Sharon N. DiPrinzio, and Thomas Guzman (Corporate); and Hille R. Sheppard and John Skakun (Litigation).