The Company’s automobile, general and worker's compensation insurance is partially self-insured. The general liability deductible was per claim as of and The worker’s compensation and automobile policies are fully-insured. The Successor and Predecessor had accrued million and million, as of and respectively, for claims incurred but reported and estimated losses reported, which is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

 

The Company offers employee health benefits via a partially self-insured medical benefit plan. Participant claims exceeding certain limits are covered by a stop-loss insurance policy. The Company contracts with a party administrator to process claims, remit benefits, etc. The party administrator requires the Company to maintain a bank account to facilitate the administration of claims. The account balance was million and million, as of and respectively, and is included in cash and cash equivalents in the accompanying consolidated balance sheets.

 

Management accrued million and million, as of and respectively, for health claims incurred but reported based on historical claims amounts and average lag time, which is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

 

 

The Company is currently involved in certain legal proceedings and other disputes with parties that have arisen in the ordinary course of business. Management believes that the outcomes of these matters will have a material impact on the Company’s financial statements and does believe that any amounts need to be recorded for contingent liabilities in the Company’s consolidated balance sheets.

 

 

The ABL Credit Agreement provides for up to million of standby letters of credit. As of total outstanding letters of credit totaled million, the vast majority of which had been committed to the Company’s general liability insurance provider.