Travelers today filed a notice that it is appealing to the United States District Court for the Southern District of New York the January 20, 2011 final judgment on the December 16, 2010 order granting, inter alia, Statutory Direct Action Settlement Counsel’s motion to compel payment of the Statutory Direct Action Settlement Agreement settlement proceeds. Further updates will be issued as the case progresses.

The Bankruptcy Court for the Southern District of New York today entered a unitary final judgment on its December 16, 2010 order granting, inter alia, Statutory Direct Action Settlement Counsel’s motion to compel payment of the Statutory Direct Action Settlement Agreement settlement proceeds. Travelers has signaled that it intends to appeal this judgment. In addition, the Bankruptcy Court today entered a stipulated order modifying the Statutory Direct Action Settlement Fund Distribution Procedures Claims Filing Deadline. The Statutory Direct Action Settlement Fund Distribution Procedures Claims Filing Deadline is now March 16, 2011. Further updates will be issued as the case progresses.

On December 16, 2010, the Bankruptcy Court for the Southern District of New York entered an order granting Statutory Direct Action Settlement Counsel’s motion to compel payment of the Statutory Direct Action Settlement Agreement settlement proceeds. On December 17, 2010, Travelers filed a motion requesting that the Court’s order be entered as a judgment and that there be a stay of execution of the judgment pending appeal. Statutory Direct Action Counsel will be responding to Travelers’ motion. A hearing on Travelers’ motion has been scheduled for January 19, 2011. Further updates will be issued as the case progresses.

Travelers’ petitions to the United States Supreme Court for certiorari and mandamus review of the Second Circuit Court of Appeals March 22, 2010 ruling were denied on November 29, 2010. Meanwhile, the Statutory Direct Action Settlement Counsel’s motion to compel payment of the settlement proceeds pending before the Bankruptcy Court for the Southern District of New York has been argued and is under advisement. Further updates will be issued as the case progresses.

On October 20, 2010, a hearing before the Bankruptcy Court was held on Statutory Direct Action Settlement Counsel’s motion to compel payment of the settlement proceeds. In that motion, Statutory Direct Action Settlement Counsel sought an order requiring immediate payment by Travelers of the settlement proceeds, together with interest on those proceeds dating from the Supreme Court’s ruling in June 2009. Travelers opposed the motion. The Bankruptcy Court took the matter under advisement. Further updates will be issued as the case progresses.

Travelers petition to the Second Circuit Court of Appeals for rehearing / rehearing en banc of its March 22, 2010 ruling that reversed the District Court’s March 29, 2006 order affirming the Bankruptcy Court’s August 17, 2004 order as to Chubb was denied. Accordingly, the case has now been remanded to the Bankruptcy Court to determine the status of the Statutory Direct Action Settlement in light of the Second Circuit’s ruling. A hearing before the Bankruptcy Court as to how to proceed on this question is scheduled for later this month. Meanwhile, in late August Travelers filed petitions for a writ of certiorari and a writ mandamus with the Supreme Court concerning the Second Circuit’s ruling. Further updates will be issued as the case progresses.

Travelers petitioned the Second Circuit Court of Appeals for rehearing / rehearing en banc of its March 22, 2010 ruling that reversed the District Court’s March 29, 2006 order affirming the Bankruptcy Court’s August 17, 2004 order as to Chubb. On May 25, 2010, the Second Circuit denied Travelers’ petition for rehearing / rehearing en banc. On June 3, 2010, Travelers moved the Second Circuit Court of Appeals for a stay of issuance of the mandate while it seeks certiorari review by the United States Supreme Court of the March 22, 2010 ruling. The Second Circuit has not yet ruled on that motion. Further updates will be issued as the case progresses.