… Like a Bridge Over Troubled Water

One stanza of an old Paul Simon song goes: “When darkness comes and pain is all around, like a bridge over troubled waters, I will lay me down.”

The recent news that two Kansas businessmen have offered to purchase the assets of the troubled and lawsuit-riddled Brooke Corp. franchise made those words come alive. After several years of legal actions, loan defaults and cries of foul play by agent/owner franchisees all over the country, there seems to be “a bridge over troubled water” or at least some ray of hope coming through. In an article in this issue on page 10, “Brooke Corp. Troubles Continue as Stock is Sold,” some of the sad saga of this franchise gone south is outlined.

But the good news heard on Oct. 28 is that two very serious Kansas businessmen, one in banking and the other in insurance, have made a solid offer to purchase the assets of Brooke Corp.

When the news hit about the possible purchase, Insurance Journal interviewed Albert Riederer, the special master appointed by the U.S District Court to oversee Brooke’s finances during pending litigation between Brooke and the Bank of New York and other suits. He sees positive results if the sale goes through.

“These buyers have the impressive insurance experience and financial backing it will take to really make this work going forward and will give Brooke time to work on the financial issues that were the cause of the litigation,” Reiderer said.

Principals of proposed New Brooke Ltd. LLC, would be buyers Lysle Davidson of Johnson City, Kan., and Terry Nelson of Long Island, Kan.

Davidson has more than 20 years of experience in the insurance industry. He founded and operates Western Shelter Insurance Inc. in Johnson City, as well as several other business interests. Nelson brings more than 30 years of banking and business experience to the partnership. He serves as CEO of a vertically-integrated agriculture operation in Long Island.

Riederer pointed out that the transaction offers opportunities for franchisees currently with Brooke. Nelson and Davidson intend to work with Brooke’s employees, agents and insurers to provide outstanding services to Brooke clients across the country, Reiderer said. He added that although all parties are working toward the final sale, there is no time frame for the completion. Litigation against the Brooke Corp. would continue until the company declares bankruptcy.

It’s not a done deal, no guarantees, but hope is alive and most would agree that this may be the bridge over troubled water that was needed. Time will tell.