Trenwick Group Ltd. announced that its subsidiary Trenwick Holdings Limited has entered into a definitive agreement with Bestpark Limited, an affiliate of Litigation Control Group Limited (LCL), for the sale of all of the capital stock of Trenwick International Limited, the company’s London-based specialty insurance and reinsurance subsidiary, which is currently in runoff.
It will also sell to Bestpark all of the capital stock of Trenwick Management Services Ltd. and Specialist Risk Underwriters Limited, its International management services company that has carried out underwriting agency services for Trenwick International and other entities. Upon completion of the acquisition, LCL will manage the runoff of Trenwick International.
The sale, which had been anticipated, is part of Trenwick’s restructuring following its filing for Chapter 11-bankruptcy protection in Delaware. (See IJ Website August 21). The actual purchase price was not disclosed; however Trenwick’s announcement indicated that “substantially all of the initial consideration to be paid by Bestpark will be used to pay transactional fees and expenses. The remaining consideration, if any, will be contingent upon a successful runoff of the Trenwick International business.”
The sale is subject to the fulfillment of customary closing conditions, including the approval of the U.K.’s Financial Services Authority.
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