Penn Treaty American Corporation (PINK:PTYA) Still Fighting Hard

Penn Treaty American Corporation (PINK:PTYA) has been on a steady uptrend recently, which would hardly come as a surprise had it not been for the fact that the company is fighting hard to avoid liquidation.

Yesterday, PTYA gained 13% in value as it wrapped up trading at $0.92, up $0.11 from its previous close, on a total volume of 216 thousand, more than 3 times higher than the average daily turnover. In the light of PTYA‘s low financial profile, this is quite an achievement.

Founded more than 40 years ago, Penn Treaty was forced to file for a rehabilitation plan four years ago. Instead of providing one, however, the Pennsylvania Insurance Dept. unexpectedly took steps towards liquidation so the company had to appeal before the court to avoid this from happening. Having honoured PTYA‘s countermove, the court has now given the green light for drawing up a concreet rehabilitation plan.

What the bad news here is is that this solution took 4 years to shape up. Basides, only heaven knows how much longer the plan will take until it brings any benefits.

Prior to the worldwide financial crisis, PTYA was focused on providing insurance and re-insurance services. At present, however, its managers will certainly have a hard time attracting the external capital they have so desperately needed for quite a while. Even though the court’s resolution might lighten the atmosphere a little bit, it will hardly give PTYA a boost that is big enough to push it up in pennystockland.