Ritchie hedge funds set bid procedures for sale of substantially all assets

By Caroline Salls

Pittsburgh, Sept. 17 - Ritchie Risk-Linked Strategies Trading (Ireland), Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) II, Ltd. requested court approval of the bidding procedures for the proposed sale of substantially all of their assets, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The assets to be sold include the companies' pool of insurance policies, the right to collect benefit proceeds from the related issuing insurance companies, the right to proceeds of policy loans or withdrawals post-purchase and the right to proceed against any state guarantee fund and other property and interests in property.

The assets will be sold in either two separate pools or together.

The initial overbid for any Ritchie I asset pool must be at least $1 million above the starting bid; the initial overbid for any Ritchie II asset pool must be at least $500,000 more than the starting bid and the initial overbid for all of the assts must be at least $3 million more than the starting bid.

Ritchie I asset pool bids must include at least a $3 million deposit, Ritchie II asset pool bids must include at least a $1 million deposit and bids for all of the assets must include at least a $5 million deposit.

A hearing on approval of the bid procedures is scheduled for Sept. 26.

The auction is set for Nov. 9, and the sale hearing will be held on Nov. 14.

Ritchie Capital Management, Ltd.'s two Ireland-based hedge funds filed for bankruptcy on June 20. Their Chapter 11 case number is 07-11906.

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