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Atlas Financial seeks order closing Chapter 15 bankruptcy case
By Sarah Lizee
Olympia, Wash., June 14 – Atlas Financial Holdings, Inc. is seeking an order from the U.S. Bankruptcy Court for the Southern District of New York closing its Chapter 15 case.
As previously reported, the company received recognition from the U.S. court of its scheme of arrangement regarding the restructuring and exchange of its 6 5/8% senior notes, which was approved by the Grand Court of the Cayman Islands.
The company said it received overwhelming support for the restructuring, with holders representing 99.34% of the notes voting in favor of the scheme.
Under the scheme, the notes will be canceled and exchanged for new securities on or around April 26.
The accrued interest on the notes as of the date the new notes are issued will effectively be added onto the principal of the new notes.
The new notes will have a maturity date of April 27, 2027, will be unsecured, have a par value of $25 per note and have an interest rate of 6 5/8% per annum if paid in cash and 7¼% per annum if paid in kind. The PIK option allows the company to pay interest in kind for up to two years from the date the new notes are issued.
The company will also have the option to redeem the new notes after three years at the principal amount to be redeemed, plus any accrued interest, with no penalty.
Atlas said it intends to use the extended maturity of the new notes to execute on its technology and analytics driven managing general agency strategy, with the objective of creating value for all stakeholders.
Atlas said the Chapter 15 filing will not impact day-to-day operations.
DLA Piper LLP (US) is acting as restructuring legal counsel to the company, together with Conyers Dill & Pearman LLP retained as Cayman Islands local counsel, in connection with the restructuring.
The notes were originally issued on April 26, 2017.
The financial services holding company is based in Schaumburg, Ill. The company filed Chapter 15 bankruptcy on March 4 under case number 22-10260.
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