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Maine.gov > PFR Home > Insurance Regulation > Hearing Decision Index > Document 263 : INS 99-14 : Hearing Decision
STATE OF MAINE
DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
BUREAU OF INSURANCE
The Attorney General requests the Superintendent extend the Deadline for Serving Discovery Requests to ten (10) business days after the Applicants file an Amended Asset Purchase Agreement, such discovery to be limited to issues arising from any amendments to the Asset Purchase Agreement. This request is made for the following reasons:
1. The Deadline for Serving Discovery Requests is now February 4, 2000.
2. Applicants have stated in response to discovery requests of the Superintendent that responses could not be provided because changes to the Charitable Trust Plan necessitated the amendment of the Asset Purchase Agreement. See BCBSMEs Response to Superintendents Second Information Request.
3. As of February 3, 2000, Applicants have not filed an Amended Asset Purchase Agreement.
4. Anthem has not responded to the Attorney Generals request for valuation analyses performed by it or its consultants which may necessitate further discovery on this issue. See Anthems Response to Attorney Generals First Discovery Request.
5. It is more than likely that any amendment of the Asset Purchase Agreement will result in a reduction in the Total Consideration to be paid by Anthem to BCBSME.
6. Any reduction in the Total Consideration will result in a reduction in the net cash proceeds to be paid to the Charitable Trust. This is an issue of great importance to the Attorney General and the people of the State of Maine.
7. Any changes to the Asset Purchase Agreement that result in a reduction of the Total Consideration or otherwise significantly recast the purchase and sale may have an impact on the valuation of the transaction and any fairness opinion that has been rendered.
8. In addition to any amendment of the Asset Purchase Agreement necessitated by changes to the Charitable Trust Plan, it is possible that amendments may be considered, or should be considered, as a result of (a) the award of the State health insurance program to BCBSME; (b) the exit from the market of Tufts Health Plan; and (c) the receivership of Harvard Pilgrim.
9. All of the above matters should be explored through discovery. If the discovery deadline is not extended, this will not be possible.
WHEREFORE, the Attorney General requests that the Superintendent extend the discovery deadline to ten (10) business days after the Applicants file an Amended Asset Purchase Agreement, such discovery to be limited to issues arising from any amendments to the Asset Purchase Agreement.
Dated: February 4, 2000
Last Updated: August 22, 2012
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