Sale of British American building at advanced stage
British American Insurance Company creditors and policyholders could get a New Year cash boost.
The companys four-storey, 11,080-square-feet Front Street building has found a potential buyer, The Royal Gazette has learned.
KPMG Advisory Ltd, agents to the Official Receiver, stated: The sale of the building is at an advanced stage, but has not completed.
Further information will be released should the sale complete, including a communication to creditors.
The asking price for the British American building, listed with agents Coldwell Banker Bermuda Realty, was slashed last October to $1.95 million, having already been reduced to $2.7 million, down from $3.6 million. Its understood the current offer is less than the $1.95 million asking price.
The drops in price mean the final distribution to be divided among creditors or policyholders still awaiting a final payout cheque will be less than hoped.
The building was home to British American, before it was wound up after its 2009 collapse.
At the time of the last reduction, KPMG Advisory had said: Creditors should be aware that it remains the objective of the Official Receiver to execute a sale as soon as possible.
As such, in order to assist those purchasers who are finding it difficult to obtain financing in the prevailing economic environment, the Official Receiver has further reduced the asking price to $1.95 million.
BAICO owns 40 percent of the building with the other 60 percent belonging to the BAICO Bermuda pension scheme.
There are approximately 3,800 BAICO policyholders and 6,000 policies.
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