ILLINOIS ENVIRONMENTAL SERVICES WORKERS COMPENSATION TRUST LIQUIDATED

Chicago, IL -- The Circuit Court of Cook County Illinois has granted Illinois Insurance Director Nat Shapo's petition to place the Illinois Environmental Services Workers Compensation Trust ("Environmental") into liquidation. An Illinois group workers compensation self-insurance pool, Environmental was placed under an Order of Liquidation on March 22, 2001, based on the Department of Insurance's findings that the pool was insolvent by at least $3 million.

Environmental was originally placed in conservation on July 31, 2000. Pursuant to statutory authority under the Illinois Workers Compensation Act, Director Shapo had previously ordered the company to assess its members an amount sufficient to cure the deficiencies in its financial condition. However, Environmental has been unable to recover adequate funds from its members, and the Director moved to place the company into liquidation for the protection of claimants and creditors. Simultaneously, the Director as Liquidator has ceased paying all claims.

Illinois Environmental Services Workers Compensation Trust was organized in November 1991 under the Illinois Workers Compensation Act for the purposes of administering a program of group self-insurance for worker compensation loss exposures for members of the Illinois Association of Environmental Service Companies. As of December 31, 1999, Environmental reported earned premium of $1.4 million and a net loss of approximately $950,000.

The Liquidation Order contains an injunction prohibiting suits against Environmental outside of the liquidation proceedings. The Illinois Workers Compensation Act also establishes a group workers compensation pool insolvency fund, which can be activated whenever the Director of Insurance shall determine that the compensation or medical services provided by the Act may be unpaid by reason of default of an insolvent group pool. Although the Fund currently has limited monies, claimants interested in pursuing claims should contact Robert Enoex at the Illinois Department of Insurance at (217) 782-2867.

The liquidation proceedings are being handled on behalf of the Director of Insurance by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, Illinois 60654; (312) 836-9500.