Trenwick to Suspend Preferred Share Dividends

Trenwick Group Ltd. announced that, “in accordance with the terms of Trenwick’s current credit facility and forbearance agreement with its letter of credit providers,” it has elected to suspend, with immediate effect and for an indefinite period, dividends or distributions payable on the following preferred shares:

-Trenwick Group Ltd. Series B Cumulative Convertible Perpetual Preferred Shares;
-LaSalle Re Holdings Limited’s Series A Preferred Shares and Trenwick Capital Trust I 8.82% Exchange Subordinated Capital Income Securities.

“The suspension on the payment of dividends on LaSalle Re Holdings Limited’s includes a suspension of the dividend payable on December 2, 2002 to holders of record on October 31, 2002,” said the company.

Trenwick announced last week that it had reached an accord with its letter of credit providers to extend their forbearance agreement until Dec. 6 in the hopes that ongoing negotiations would result in an extension of its Lloyd’s credit lines through 2003. (See IJ Website Nov. 25) The suspension of preferred dividend payments has apparently been agreed to as part of those negotiations.