Thaxton Life Partners Seeks Bankruptcy Protection

LANCASTER, S.C., Nov. 13, 2003 -- Thaxton Life Partners and its subsidiary Thaxton RBE, a Lancaster, SC based automobile insurance operation specializing in hard to place insurance customers, filed for Chapter 11 bankruptcy protection today. Higher than expected start up costs for expanding the distribution system and losses in its reinsurance operation led to the decision to seek protection under Chapter 11.

CEO James Thaxton said that Thaxton Life Partners had decided to reorganize in order to position the TLP subsidiary, Thaxton RBE, at its maximum value.

One hundred and three investors in Georgia, North Carolina, Ohio and South Carolina have invested $20 million in Thaxton Life Partners. Investments in the form of subordinated notes are currently frozen. During Chapter 11 individual lawsuits are stayed, and the investors and creditors are given a collective voice (through a committee) in how the company is restructured. Individual insurance customers will still be serviced by the company.

Thaxton Life Partners sells their products in seven states, Arizona, Colorado, Nevada, New Mexico, North Carolina, South Carolina, and Virginia.

Thaxton Life Partners and its subsidiaries are separate legal entities from The Thaxton Group, Inc.