Two months after it averted possible bankruptcy, Bermuda-based Scottish Re has announced two senior executive changes.

The shake-up comes in the wake of a difficult spell for the global reinsurance company, which had faced going into bankruptcy if it had not secured a $600 million rescue through MassMutual Capital Partners and Cerberus Capital Management in March this year.

That deal was approved at a make-or-break shareholder meeting in Bermuda.

Scottish Re, which has offices in Par-La-Ville Road, has announced its chief executive officer Paul Goldean is to be replaced. The search for a new CEO has begun.

At the same time the company has announced executive vice-president of corporate development Hugh McCormick is to leave the company after two years and return to his former role with a New York law firm acting as a legal advisor for Scottish Re and others.

Once a replacement CEO is found, Mr. Goldean will become Scottish Re's chief administration officer. In this role, he will be responsible for corporate development, investor relations and legal/regulatory matters, the company said.

"Since his appointment as CEO on July 31, 2006, Paul Goldean has admirably served the company and its shareholders. With calm and thoughtful leadership, Paul guided the company through a difficult period resulting in the successful completion of the $600 million equity investment transaction by MassMutual Capital Partners LLC and affiliates of Cerberus Capital Management, L.P.," said Scottish Re Group board members Chris Brody and Larry Port in a joint statement.

"We are pleased that Paul will continue to shape the future direction of Scottish Re in his new role once the appointment of the new CEO is announced. His knowledge and experience will be enormously valuable as we work to deliver on our business and financial goals."

Mr. Goldean joined the company in February 2002 as senior vice-president and general counsel. Prior to joining Scottish Re, he worked at Jones, Day, Reavis & Pogue where, among other things, he acted as outside counsel to the company.

The other announced change will occur at the end of June when Hugh McCormick leaves the company to return to legal practice at the New York office of LeBoeuf, Lamb, Greene & MacRae L.L.P.

Mr. McCormick will resume his role as legal adviser to Scottish Re, a position he held before he joined Scottish Re in 2005.

During his time at Scottish Re, Mr McCormick was an executive vice-president of corporate development.

"Since joining Scottish Re in 2005, Hugh has been an important part of the Scottish Re team making significant contributions to the company's capital market initiatives and with regulatory matters," said current Scottish Re CEO Mr. Goldean. "We wish him continued success after his return to public practice."

Mr. McCormick said of his departure: "It has been a pleasure working at Scottish Re and I look forward to maintaining both the personal and professional relationships with my colleagues at Scottish Re."

He was previously a partner in the New York office of LeBoeuf, Lamb, Greene & MacRae L.L.P. where he advised Scottish Re and other domestic and foreign insurance and reinsurance companies on tax, regulatory and corporate matters arising in connection with mergers and acquisitions, demutualisations, reinsurance transactions and insurance products. He then joined Scottish Re in 2005.

From 1977 to 1981 Mr. McCormick was an attorney-advisor with the interpretative division of the Office of Chief Counsel of the Internal Revenue Service.