LandAmerica Financial Group Inc, a provider of real estate transaction services, said the company, along with its unit, LandAmerica 1031 Exchange Services Inc, filed for bankruptcy protection in order to facilitate the sale of its two principal title underwriting subsidiaries. The voluntary petitions for relief have been filed under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Eastern District of Virginia.

Together with the bankruptcy filing, LandAmerica is seeking customary authority from the Bankruptcy Court that will enable it to continue operating its business and serving its customers in the ordinary course. It will make similar requests of the Nebraska Department of Insurance in connection with the rehabilitation process.

The company said the recent termination of a merger agreement with Fidelity National Financial and the closure of its 1031 Exchange Company's business caused it to accelerate the action, and that none of its many other businesses are seeking bankruptcy protection. It was on Friday that Fidelity withdrew its $126 million stock offer.

Separately, Fidelity National Financial said it would buy LandAmerica's underwriting units Lawyers Title Insurance Corp and United Capital Title Insurance Co for $139.4 million. Fidelity also said that Chicago Title Insurance Co will buy LandAmerica's Commonwealth Land Title Insurance Co for $158.6 million.

The closing of the sale of the subsidiaries are subject to approvals by the Bankruptcy Court, the Nebraska Department of Insurance, and other state and federal regulatory agencies. LandAmerica said it will request expedited approval from the Bankruptcy Court. According to Fidelity, the deal is also subject to Hart Scott Rodino approval and the receipt of Form A approvals from applicable state insurance regulators.