IRWIN MORTGAGE CORPORATION AND IRWIN REINSURANCE CORPORATION

Case Highlights

• Created strategy to quickly monetize assets
• Directed and negotiated the commutation of five reinsurance trusts

Case Narrative

In 2009, the FDIC declared Irwin Union Bank and Trust (“IUBT”) insolvent and its parent company, Irwin Financial Corporation, filed a Chapter 7 petition in Indianapolis. The FDIC receiver sold all of IUBT’s assets, including the stock of Irwin Mortgage Corporation (“IMC”) and its wholly owned subsidiary, Irwin Reinsurance Corporation (“IRC”), to First Financial Bank.  Prior to the sale, IMC had sold its entire residential mortgage portfolio and loan servicing business to multiple buyers.  By mid-2011, First Financial Bank became concerned over the continued exposure to legacy consumer borrower litigation and repurchase claims and other litigation related to IMC former operations.  To clearly separate the operations of, and ultimately wind down, IMC and IRC from First Financial Bank, Fred Caruso and members of DSI were retained to serve as President and other various officer positions, respectively, for both entities. The main goal of DSI’s wind-down strategy was to monetize the remaining assets and establish an efficient claims resolution process.  DSI served as IMC’s management through the pendency of the bankruptcy case, and presently serves as the post-confirmation Trustee of the Liquidating Trust that was created pursuant to the Debtor’s Plan of Liquidation.