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Court orders Markel Catco meetings

The Supreme Court has ordered creditor meetings to consider schemes of arrangements proposed by Markel CATCo Reinsurance Fund Ltd and CATCo Reinsurance Opportunities Fund Ltd, both provisional liquidators appointed for restructuring purposes.

In a filing with the Bermuda Stock Exchange, CATCo Reinsurance Opportunities Fund Ltd has announced the update regarding the proposed schemes with regard to the buyout transaction involving Markel CATCo Investment Management Ltd.

The first opportunity for the meetings is March 4, and notice would be given, if it is to be held later.

A small group of creditors at the private fund had previously raised challenges to the settlement terms.

MCIM and the funds believed there were robust arguments against these challenges and vigorously defended the schemes.

But on February 4, it was announced that a settlement had been reached with the investors who had sought improvements to the terms of the buyout transaction.

It included an additional $10-million provided by Markel Corporation, and distributed pro rata to all Investors.

Markel would also add an additional contribution of up to $10 million to fund all transaction costs in excess of the prior stated amounts for the buyout transaction. The increase would defray transaction costs, which would otherwise have been paid from fund assets.

Now, according to this week’s filing: “In accordance with the court's directions, an explanatory statement will shortly be published together with notices to convene meetings of scheme creditors for the purposes of voting to approve or reject the schemes.

“Full details regarding how to attend and vote at the scheme meetings will be contained in the notices of meetings and explanatory statement.”

Details of the buy-out transaction and the proposed schemes of arrangement are available on the scheme website at https://catcobuyout.alixpartners.com

Creditor meetings to be set in March for Markel CATCo Reinsurance Fund Ltd. and CATCo Reinsurance Opportunities Fund Ltd.

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Published February 18, 2022 at 7:54 am (Updated February 18, 2022 at 7:54 am)

Court orders Markel Catco meetings

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