FedNat Holding Company, along with its affiliates, filed a combined plan of liquidation and disclosure statement in the US Bankruptcy Court on July 9, 2023. As per the plan filed, administrative claims, priority tax claims, accrued professional compensation claims, FNHC secured claim of $0, FNU secured claims of $0, ClaimCor secured claims of $0, CRIS secured claims of $0, Insure-Link secured claims of $0, FNHC priority claims of $0, FNU priority claims of $3,449, ClaimCor priority claims of $6,778, CRIS priority claims of $0, Insure-Link priority claims of $0, shall be paid in full in cash. Senior Notes Claims of $127.55 million shall be recovered between 5.4%-16.7% and shall receive its pro rata share of net free cash.

FNHC general unsecured claims of $0.13 million shall be recovered between 5.4%-16.7% and shall receive its pro rata share of net free cash. FNHC preferred stock interests and FNHC common stock interests shall receive no distribution under the plan and shall be cancelled. FNU general unsecured claims of $14.26 million shall be recovered between 16.4%-100% and shall receive its pro rata share of net free cash.

FNU Stock Interests shall receive any remaining net free cash only after all other FNU claims are paid in full. If no net free cash remains in FNU after satisfaction of all allowed claims against FNU, then, on the earliest date following the effective date upon which a determination can be made that no net free cash remains in FNU, all FNU stock interests shall be transferred to the plan administrator. ClaimCor general unsecured claims of $2.40 million shall receive its pro rata share of net free cash.

ClaimCor Stock Interests shall receive any remaining net free cash only after all other ClaimCor claims are paid in full. If no net free cash remains in ClaimCor after satisfaction of all allowed claims against ClaimCor, then, on the earliest date following the effective date upon which a determination can be made that no net free cash remains in ClaimCor, all ClaimCor stock interests shall be transferred to the plan administrator. CRIS general unsecured claims of $2.81 million shall be recovered between 58.2%-100% and shall receive its pro rata share of net free cash.

CRIS Stock Interests shall receive any remaining net free cash only after all other CRIS claims are paid in full. If no net free cash remains in CRIS after satisfaction of all allowed claims against CRIS, then, on the earliest date following the effective date upon which a determination can be made that no net free cash remains in CRIS, all CRIS interests shall be transferred to the plan administrator. Insure-Link general unsecured claims of $2.54 million shall be recovered between 79.3%-100% and shall receive its pro rata share of net free cash.

Insure-Link stock interests shall receive any remaining net free cash only after all other Insure-Link claims are paid in full. If no net free cash remains in Insure-Link after satisfaction of all allowed claims against Insure-Link, then, on the earliest date following the effective date upon which a determination can be made that no net free cash remains in Insure-Link, all Insure-Link stock interests shall be transferred to the plan administrator. The plan shall be funded through cash.