Trenwick asks to extend exclusivity period to March 17

By Peter Heap

New York, Dec. 19 - Trenwick America Corp. filed a motion in bankruptcy court to extend the period in which it has the exclusive right to file a plan of reorganization and solicit acceptances from its creditor.

Trenwick is looking to extend the exclusive period for filing a reorganization plan to March 17 from Dec. 18 and for soliciting acceptances to May 17 from Feb. 16.

The extension is needed, Trenwick told the U.S. Bankruptcy Court for the District of Delaware, because it has been focused on two asset sales that had to be completed because of deadlines at Lloyd's of London.

"As a result of the debtors' efforts with respect to the U.K. transactions, the debtors have been unable to spend the time necessary to properly negotiate the final detailed elements of a plan with creditors," Trenwick said in a court filing.

With the sales completed, the company can now focus on preparing the plan. But it said that the analysis necessary to determine the most efficient tax structure will require more time as will negotiating with creditors.

Trenwick completed the sale of the ordinary shares of Oak Dedicated Ltd., Oak Dedicated Two Ltd. and Oak Dedicated Three Ltd., all subsidiaries of LaSalle Re Ltd., on Nov. 28. The buyer was FOSPV Ltd., a subsidiary of Barclays Bank.

It completed the sale of its insurance underwriting operations at Lloyd's to Magicsunny Ltd. on Dec. 8.

A hearing on the extension has been set for Jan. 15.

Trenwick, along with Trenwick Group Ltd. and LaSalle Re Holdings Ltd., filed for Chapter 11 in the United States and for winding-up proceedings in Bermuda on Aug. 20.

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