Ct Healthmarket via BizWire
08-07-2003, 02:50 PM
HAMILTON, Bermuda--(BUSINESS WIRE)--Aug. 7, 2003--Trenwick Group
Ltd. ("Trenwick")(OTC: TWKGF) stated today that it has entered into a
letter of intent with respect to an agreement in principle on a
long-term restructuring of Trenwick's debt obligations, the sale of
its business operations at Lloyd's, and the runoff of its remaining
businesses with (i) the majority of the beneficial holders (the
"Senior Noteholders") of the 6.70% Senior Notes (the "Senior Notes")
of its wholly owned subsidiary, Trenwick America Corporation
("Trenwick America"), (ii) the steering committee (the "Steering
Committee") of the lending institutions (the "Banks") that have issued
letters of credit under a senior secured credit facility (the "LoC
Facility") on behalf of certain subsidiaries of Trenwick in support of
Trenwick's Lloyd's operations, and (iii) a group composed of current
members of management of Trenwick's Lloyd's operations (the
"Management Team"). Trenwick America did not pay principal and
interest on the Senior Notes due on August 1, 2003, which also created
an event of default with respect to the LoC Facility and under certain
other indebtedness of Trenwick America.
The restructuring will be implemented through various means,
including but not limited to the following: (i) the filing by Trenwick
and/or one or more of its subsidiaries of Chapter 11 bankruptcy
proceedings in the United States and the filing of similar proceedings
in Bermuda, Barbados or the United Kingdom, as the case may be; (ii)
the sale by Trenwick of substantially all of its Lloyd's operations to
a company controlled by the Management Team and with capital provided
by the Management Team, third-party investors and the Banks and (iii)
the retention of third party run-off advisors and the continued runoff
or disposition of all of Trenwick's other insurance and reinsurance
operations. In light of the foregoing, Trenwick believes that it is
unlikely that any of the holders of the shares of Trenwick or of its
wholly-owned Bermuda subsidiary, LaSalle Re Holdings Ltd will receive
any return on their investment in the near term if at all.
The terms of the restructuring are subject to the satisfaction of
numerous conditions precedent including, but not limited to, the
following: (i) approval of the restructuring by the Banks; (ii)
negotiation of definitive documentation (iii) receipt of all requisite
regulatory and other approvals in the United States, Bermuda and the
United Kingdom; (iv) due diligence by Englefield Capital LLP, the
proposed equity sponsor of the Management Team, which has entered into
an exclusive negotiation agreement with Trenwick, and (v) approval of
any court having jurisdiction over the above-referenced insolvency
proceedings.
Background Information
Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with subsidiaries located in the United
States, the United Kingdom and Bermuda. Trenwick's operations at
Lloyd's, London underwrite specialty insurance as well as treaty and
facultative reinsurance on a worldwide basis. Trenwick's United States
specialty program business, specialty London market insurance company,
Trenwick International Limited, and its United States reinsurance
business through Trenwick America Reinsurance Corporation are now in
runoff. In 2002, Trenwick sold the in-force business of LaSalle Re
Limited, its Bermuda based subsidiary.
Safe Harbor for Forward-Looking Statements
Certain statements made in this press release that are not based
on current or historical facts are forward-looking in nature
including, without limitation, statements containing words "believes,"
"anticipates," "plans," "projects," "intends," "expects," "estimates,"
"predicts," and words of similar import. Such forward-looking
statements, including in particular Trenwick's forecast of future
results, involve known and unknown risks, assumptions, uncertainties,
and other factors disclosed in Trenwick's filings with the Securities
and Exchange Commission that may cause actual results, performance, or
achievements of Trenwick to differ materially from any future results,
performance, or achievements expressed or implied by such
forward-looking statements. In particular, forecasting of reserves for
future losses is based on historical experience and future
assumptions. As a result they are inherently subjective and may
fluctuate based on actual future experience and changes to current or
future trends in the legal, social or economic environment. Trenwick
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
Ltd. ("Trenwick")(OTC: TWKGF) stated today that it has entered into a
letter of intent with respect to an agreement in principle on a
long-term restructuring of Trenwick's debt obligations, the sale of
its business operations at Lloyd's, and the runoff of its remaining
businesses with (i) the majority of the beneficial holders (the
"Senior Noteholders") of the 6.70% Senior Notes (the "Senior Notes")
of its wholly owned subsidiary, Trenwick America Corporation
("Trenwick America"), (ii) the steering committee (the "Steering
Committee") of the lending institutions (the "Banks") that have issued
letters of credit under a senior secured credit facility (the "LoC
Facility") on behalf of certain subsidiaries of Trenwick in support of
Trenwick's Lloyd's operations, and (iii) a group composed of current
members of management of Trenwick's Lloyd's operations (the
"Management Team"). Trenwick America did not pay principal and
interest on the Senior Notes due on August 1, 2003, which also created
an event of default with respect to the LoC Facility and under certain
other indebtedness of Trenwick America.
The restructuring will be implemented through various means,
including but not limited to the following: (i) the filing by Trenwick
and/or one or more of its subsidiaries of Chapter 11 bankruptcy
proceedings in the United States and the filing of similar proceedings
in Bermuda, Barbados or the United Kingdom, as the case may be; (ii)
the sale by Trenwick of substantially all of its Lloyd's operations to
a company controlled by the Management Team and with capital provided
by the Management Team, third-party investors and the Banks and (iii)
the retention of third party run-off advisors and the continued runoff
or disposition of all of Trenwick's other insurance and reinsurance
operations. In light of the foregoing, Trenwick believes that it is
unlikely that any of the holders of the shares of Trenwick or of its
wholly-owned Bermuda subsidiary, LaSalle Re Holdings Ltd will receive
any return on their investment in the near term if at all.
The terms of the restructuring are subject to the satisfaction of
numerous conditions precedent including, but not limited to, the
following: (i) approval of the restructuring by the Banks; (ii)
negotiation of definitive documentation (iii) receipt of all requisite
regulatory and other approvals in the United States, Bermuda and the
United Kingdom; (iv) due diligence by Englefield Capital LLP, the
proposed equity sponsor of the Management Team, which has entered into
an exclusive negotiation agreement with Trenwick, and (v) approval of
any court having jurisdiction over the above-referenced insolvency
proceedings.
Background Information
Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with subsidiaries located in the United
States, the United Kingdom and Bermuda. Trenwick's operations at
Lloyd's, London underwrite specialty insurance as well as treaty and
facultative reinsurance on a worldwide basis. Trenwick's United States
specialty program business, specialty London market insurance company,
Trenwick International Limited, and its United States reinsurance
business through Trenwick America Reinsurance Corporation are now in
runoff. In 2002, Trenwick sold the in-force business of LaSalle Re
Limited, its Bermuda based subsidiary.
Safe Harbor for Forward-Looking Statements
Certain statements made in this press release that are not based
on current or historical facts are forward-looking in nature
including, without limitation, statements containing words "believes,"
"anticipates," "plans," "projects," "intends," "expects," "estimates,"
"predicts," and words of similar import. Such forward-looking
statements, including in particular Trenwick's forecast of future
results, involve known and unknown risks, assumptions, uncertainties,
and other factors disclosed in Trenwick's filings with the Securities
and Exchange Commission that may cause actual results, performance, or
achievements of Trenwick to differ materially from any future results,
performance, or achievements expressed or implied by such
forward-looking statements. In particular, forecasting of reserves for
future losses is based on historical experience and future
assumptions. As a result they are inherently subjective and may
fluctuate based on actual future experience and changes to current or
future trends in the legal, social or economic environment. Trenwick
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
