Validus Responds to Court Ruling; Asks for ‘Scheme of Arrangement’

May 15, 2009

Validus Holdings has issued a statement in response to the decision by the Supreme Court of Bermuda not to expedite its lawsuit against IPC Holdings, Ltd. IPC Limited and Max Capital Group Ltd. (See related article above).

The court rejected Validus demand to expedite the lawsuit, which seeks to void the $50 million termination fee and “no-talk” provision contained in the IPC-Max Amalgamation Agreement.

However, Validus statement points out that the decision “only related to the timetable for the proceedings and was not a judgment on the merits of Validus’ claims. The Judge acknowledged that Validus has raised ‘serious questions to be tried.'”

In addition Validus said the “Court’s ruling has no effect on Validus’ resolve to complete its acquisition of IPC, including the Exchange Offer we announced on May 12, 2009 and the Scheme of Arrangement, neither of which is conditioned on the elimination of the possible termination fee to Max.”

In a related action Validus said it “has filed with the Supreme Court of Bermuda an application for the court to convene a meeting of shareholders of IPC Holdings, Ltd. in connection with Validus’ previously announced Scheme of Arrangement under which Validus would acquire all of the IPC common shares under the same economic terms as in the Exchange Offer announced by Validus on May 12, 2009.

In a separate announcement Max Capital and IPC Re said they had received all requisite regulatory approvals for their transaction.

Source: Validus Holdings – www.validusre.bm
See also Max Capital Group – www.maxcapgroup.com and IPC Re – www.ipcre.bm

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