LaSalle Re announces final payment; parent shareholders get nothing

By Caroline Salls

Pittsburgh, Feb. 1 - LaSalle Re Holdings Ltd. will be dissolved after payment of a $300,000 final liquidation dividend to series A preferred shareholders on Feb. 15, according to an 8-K filed Friday with the Securities and Exchange Commission.

Insolvency proceedings were filed against the company in the United States and Bermuda in August 2003. As part of those proceedings, joint provisional liquidators were appointed for LaSalle and parent Trenwick Group Ltd.

Concurrently, Trenwick America Corp., Trenwick Group and LaSalle filed Chapter 11 bankruptcy. After a sale of LaSalle's former U.K.-based affiliates and the reorganization of Trenwick America, there were not enough assets to support reorganization, and the Chapter 11 cases were dismissed in 2004 in deference to ongoing Bermudian liquidation proceedings.

According to the 8-K, LaSalle was placed into liquidation on April 15, 2005 and Trenwick Group on Nov. 4, 2005.

LaSalle said its few remaining assets have now been collected and Trenwick Group, its immediate holding company, is in the process of being dissolved.

Under its constitutional documents, LaSalle said the series A preferred shareholders are entitled to receive a preference dividend in a liquidation of $25 per share and unpaid dividends before payments to other shareholders.

LaSalle said that following the payment of the final distribution, the joint liquidators will have paid a total of $10.60 per series A share, totaling $31.8 million of distributions to shareholders.

The final liquidation dividend will be paid to shareholders of record at the close of business on Feb. 12.

Trenwick distribution update

According to a separate 8-K filed Friday by Trenwick Group, the parent company's common shareholders will not receive a distribution given that the asset recoveries that the joint liquidators were able to achieve from the company's estate were distributed to LaSalle in partial satisfaction of Trenwick Group's intercompany debt.

Trenwick Group said it acquired an interest in $2.25 million of senior secured notes and $2.75 million of junior secured notes in 2007.

Those notes were sold by the joint liquidators at a substantial discount.

Trenwick said its few remaining assets have also now been collected, and main subsidiary LaSalle is in the process of being dissolved.

LaSalle Re is a Bermuda-based reinsurance company. Trenwick Group is a Bermuda-based insurance holding company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.