Patriot National Inc. filed for bankruptcy under a prearranged plan to hand control of its hobbled insurance-outsourcing business to lenders Cerberus Capital Management LP and TCW Asset Management Co., WSJ Pro Bankruptcy reported. The Fort Lauderdale, Fla., company entered a chapter 11 process in the U.S. Bankruptcy Court in Wilmington, Del., stemming from the insolvency of its largest customer, a messy fallout with its former chief executive and mounting lawsuits from stockholders, employees and attorneys. Cerberus and Carlyle Group-backed TCW are poised to take control of Patriot National under a prenegotiated plan that would convert $223 million in debt to new equity, chief restructuring officer James Feltman said in a sworn declaration.
