Del. Judge Stays Platinum Partners-Related Lawsuit Against SHIP Pending Rehabilitation

WILMINGTON — A Delaware vice chancellor has stayed a lawsuit against Senior Health Insurance Company of Pennsylvania (SHIP) that relates to a reinsurance scheme run by the beleaguered investment fund Platinum Partners, pending the insurer’s Pennsylvania rehabilitation proceedings.

In staying the action as to SHIP, Vice Chancellor J. Travis Laster of the Delaware Chancery Court explained that the litigation would interfere with the rehabilitation proceedings and would prejudice the rehabilitator, other claimants, and interested parties.

SHIP is a Pennsylvania-domiciled insurer that provided long-term care insurance. In 1996, SHIP was acquired Conseco Senior Health Insurance Co. Conseco filed for Chapter 11 …