Bermuda-based Trenwick Group Ltd. announced that it has filed for protection under chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court of Delaware. The filing also includes its affiliates LaSalle Re Holdings Limited and Trenwick America Corporation.
A Company announcement described the filing as “a step in its previously announced restructuring and in accordance with its August 6 letter of intent with creditors.” It also noted that “Trenwick and LaSalle Re Holdings are in the process of filing proceedings in the Supreme Court of Bermuda, known under Bermudian law as ‘winding up’, as a further step in the restructuring and in accordance with the previously announced Letter of Intent.” The letter set out a plan to restructure some $375 million in debts owed to the group’s principal lenders.
The bulletin stressed that Trenwick’s insurance company subsidiaries are not parties to the bankruptcy proceedings either in Delaware or Bermuda; specifically referring to Trenwick America Reinsurance Corporation, The Insurance Corporation of New York, Dakota Specialty Insurance Company, LaSalle Re Limited, and to Trenwick’s Lloyd’s operations, all of which are in runoff.
According to a report on the filing from Reuters, Trenwick expects to dispose of its insurance and reinsurance operations, which would continue to function under their successors. It also expects to sell its Lloyd’s operations to a company controlled by Lloyd’s management.
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