Scottish Re Group Ltd Perp Pfd (SKRUF)

[Enterprising Investor]

Order Adjourning Hearing of Winding-Up Petition (9/14/17)

Hearing postponed to earliest date on or after 10/20/17.

http://www.scottishre.com/pdf/Scottish%20Re%20Group%20Limited%20-%20Order%20Adjourning%20Hearing%20of%20Winding-Up%20Petition.pdf

[Enterprising Investor]

Scottish Re to wind up after long struggle (5/26/17)

http://www.royalgazette.com/re-insurance/article/20170526/scottish-re-to-wind-up-after-long-struggle

[Enterprising Investor]

Notice of Winding Up Petition (8/31/17)

http://www.scottishre.com/pdf/SRGL%20-%20Gazette%20Advertisement%20of%20Winding%20up%20Petition.pdf

[insomniac]

Any updates on Skruf ??

[insomniac]

Read post 198 . He mentions that the sale of the company as a whole, results in a goose egg. Otherwise if sold in parts, it becomes a big winner.. Please post updates. This may take a year if it works, but so what . Could be 25 ..

[insomniac]

Read post 198 . He mentions that the sale of the company as a whole, results in a goose egg. Otherwise if sold in parts, it becomes a big winner.. Please post updates. This may take a year if it works, but so what . Could be 25 ..

[CordElam]

hey i own this one - been working on it, if you strip out the Orkney Re II assets and liabilities (assets < liabilities) which are non recourse there is significant positive book equity - and orkney re ii just won a big suit from JP morgan that resulted in a 70 million cash injection which pumps up the credit scottish gets for reinsuring to them - paid in april - only way out for scottish common equity holders (cerberus/massmutual) with preferred shareholder suit hanging over holding company is sale of main insurance sub - which should easily yield enough to potentially pay off preferreds at $25 preference - 3.3 million shares outstanding x 25 = 82.5 million - its covered on a rough estimate at 2x but working on it...do some work...interested in what others think but seems like a great risk/reward in here with provisional winding up filed in bermuda that triggers the potential of the $25 preference payout...if they could have sold the holding company they would have in their last process but the preferred suit - which got standing in New york to continue - won't go away - and by winding it up it triggers the $25 but at least the common guys get a way out...it's been a long time...

[Enterprising Investor]

Randomly

[insomniac]

Is there anyone out there following SKRUF ?? ( besides me )

[insomniac]

EI are you still following Skruf? it looks like it could come into play once again. What are your thoughts ?

[insomniac]

EI Are there any updates on
Skruf??? thanks in advance

[Enterprising Investor]

Davis v. Scottish Re Group Limited, et al.

On April 25, 2016, the plaintiff filed a motion with appellate court, seeking permission to appeal the dismissal of three derivative breach of fiduciary duty claims to the New York Court of Appeals. The Director Defendants who remain in the case and SRGL’s shareholders and certain of their affiliates have until May 12, 2016 to file an opposition to plaintiff’s motion. The plaintiff has until May 18, 2016 to file a reply brief in further support of his motion.

Notwithstanding the appellate court’s March 10, 2016 decision remanding the matter to the trial court to allow the plaintiff to replead only two breach of fiduciary duty claims against the remaining Director Defendants, on May 3, 2016, the plaintiff filed an amended complaint with the trial court in which the plaintiff repleaded eight of the original ten claims, removing two of the original claims and adding a new claim against certain of the Defendant Parties. The Director Defendants have until June 7, 2016 to file a Motion to Dismiss the repleaded breach of fiduciary duty claims. Plaintiff has until July 14, 2016 to file a brief in opposition to any motion to dismiss filed by the Director Defendants. The Director Defendants have until August 5, 2016 to file a reply brief in further support of any motion to dismiss the amended complaint. We anticipate that the deadline governing the Defendant Parties’ responses to the amended complaint will also be June 7, 2016.

[Enterprising Investor]

Conversion of CCPP Shares

As discussed in Note 7, “Mezzanine Equity - Convertible Cumulative Participating Preferred Shares”, the CCPP Shares were convertible at the option of the holder, at any time, into an aggregate of 150,000,000 Ordinary Shares of SRGL. On May 7, 2016, which represented the ninth anniversary of issue, and in accordance with the CCPP Certificate of Designations, the CCPP Shares converted into an aggregate of 150,000,000 Ordinary Shares of the Company.

We accounted for the conversion of the CCPP Shares in accordance with FASB ASC 470-20. As a result, and in accordance with the CCPP Certificate of Designations, the CCPP Shares were converted into an aggregate of 150,000,000 Ordinary Shares, with each Ordinary Share having a par value of $0.01, representing an additional $1.5 million in the Ordinary Shares amount in the Company's Consolidated Balance Sheets. The remaining balance of the CCPP Shares amount of approximately $554.4 million that was previously classified under Mezzanine Equity in the Consolidated Balance Sheets, and was over and above the Ordinary Share conversion amount of $1.5 million as described earlier, was reclassified to Additional Paid-in Capital (“APIC”).

The conversion of the CCPP Shares had no impact on the results of operations of the Company and only impacted the Consolidated Balance Sheets.

The table below provides an illustration of the changes to the Company's Consolidated Balance Sheets as follows:

[tables deleted]

see page 28.

http://www.scottishre.com/pdf/Scottish%20Re%20Group%20Limited%201Q%202016%20Consolidated%20Financial%20Statements.pdf

The conversion of the CCPP Shares had no material effect on the operations of the Company.

[Enterprising Investor]

A post from 2,498 days ago on the SKRRF board.

Enterprising Investor
Saturday, 07/25/09 09:38:08 PM
Re: None
Post #721 of 1731

Mass Mutual and Cerberus deal no grand slam.

The $600 million of Convertible Cumulative Participating Preferred Shares are convertible into an aggregate of 150,000,000 ordinary shares of SKRRF. Thus, the conversion price is $4.00 per share. SKRRF was selling for $4.66 at the time.

On the ninth anniversary of issue (5/07/16), the shares automatically convert into an aggregate of 150,000,000 ordinary shares if not previously converted. SKRRF is not required redeem these preferred shares for cash, except in the event of a liquidation or a change-in-control event. Someone suggested that Mass Mutual do a reverse merger. I am not sure if a Mass Mutual buyout of the Cerberus position would trigger the the change of control clause.

Needless to say, SKRRF has unbelievable upside for the investors to break even via the conversion. To get there, the almost $700 million deficit would have to be made up plus another $250 million or so.

In liquidation, the investors would have the right to receive the accrued unpaid dividends.

Conversion in 2016 is the mostly scenario, in my view.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39887126

[Enterprising Investor]

Scottish Re Group Limited 1Q 2016 Consolidated Financial Statements (5/12/16)

http://www.scottishre.com/pdf/Scottish%20Re%20Group%20Limited%201Q%202016%20Consolidated%20Financial%20Statements.pdf

[Enterprising Investor]

S&P withdraws Ballantyne Re Reg XXX life securitization ratings (11/26/15)

It’s no surprise to read that Standard & Poor’s has withdrawn the majority of the ratings it held on Scottish Re’s 2006 Ballantyne Re Plc Regulation XXX type life insurance-linked securities (ILS), as it no longer sees the market interest in maintaining the ratings.

This is unsurprising since Scottish Re’s life ILS deal has been considered stricken and likely to default for a number of years, having been badly impacted by the quality of the underlying collateral assets which were hit during the financial crisis years.

To refresh your memories, the Ballantyne Re issuance Regulation XXX type life insurance linked transaction had been finding it increasingly difficult to pay investors interest payments and was considered unlikely to repay principal either.

The life ILS transaction saw huge mark-to-market losses on the assets in the underlying collateral accounts, leading to regular failures to make good on interest payments, resulting in downgrades from ratings agencies and an understanding that default was likely.

Ballantyne Re had much of its notes collateral invested in a portfolio of residential mortgage-backed securities (RMBS) and other asset backed securities (ABS) but theses faced mark-to-market losses and extremely poor performance. As a result Ballantyne Re’s liabilities exceeded the current book value of its assets by a significant margin.

The collateral was invested in assets such as subprime residential mortgage-backed securities, losing lost significant value during the 2007/8 financial crisis and making interest payments are were near impossible to make.The sponsor Scottish Re itself took to making up missing interest on the payments for some time to attempt to meet obligations to the deals investors.

Standard & Poor’s which rated the Ballantyne Re notes and maintained an unsolicited rating on them even after Scottish Re requested they be withdrawn, has now decided to withdraw the majority as “there is no longer significant market interest” in them.

That’s unsurprising, as while there will still be holders of the Ballantyne Re notes they are not making interest payments and principal default is deemed likely, hence the rating serves little purpose now.

This means that the situation surrounding the notes has not changed, they are still considered stricken, likely to default and therefore a rating provides little additional value as default appears certain still.

S&P said that it will maintain a rating on the $500m Class A-2 Series B notes that have a financial guaranty policy in place from Assured Guaranty (UK) Ltd.

The Ballantyne Re XXX life insurance securitization was an interesting transaction, coming in at around $2.1 billion in total across multiple tranches of notes. Ballantyne Re is a special purpose vehicle from Ireland. It was established to enter into a reinsurance agreement and conduct activities related to the notes’ issuance. Ballantyne Re issued the various tranches of notes to finance excess reserve requirements under Regulation XXX for the block of business ceded under the reinsurance agreement with Scottish Re.

http://www.artemis.bm/blog/2015/11/26/sp-withdraws-ballantyne-re-reg-xxx-life-securitization-ratings/

[insomniac]

thanks for the updates

[h_man_investor]

Yeah pretty simple: mezz preferreds have a mandatory convert next May so they are taking offers on the different pieces of the company now. If they are successful in selling the entire company to a single buyer the preferreds are a goose egg
($0). If they sell the pieces then the preferreds are worth $25. It will be difficult to sell the different businesses as one.

If they don't sell, then the mezz converts and the preferreds will be in the pole position but who knows when you'll get your money.

By this time of year the company had already released their 2q financials so maybe they are up to something else.

They also go to court in September in the Davis lawsuit. They guy holds 2.5m shares of the preferred (if memory serves me correct). So I think they are unlikely to do a tender without him onboard.

[Enterprising Investor]

Scottish Re working with Sandler O’Neill on sale (8/24/15)

Cerberus Capital Management and MassMutual Capital Partners have appointed Sandler O'Neill as they again look to exit their stake in beleaguered life reinsurer Scottish Re, The Insurance Insider can reveal.

A handful of parties are said to be involved in the bidding process for the Bermuda-based reinsurance company, which has struggled to recover financially since being rescued in 2007 by Cerberus and MassMutual Capital Partners - the strategic investment arm of insurer MassMutual Financial Group.

http://www.insuranceinsider.com/-1256396/11

[insomniac]

H Man Are you still alive?/ is something going on at Skruf?

[h_man_investor]

I've bought all over the place. You need to take liquidity when you can.

Check this out: http://m.us.wsj.com/article_email/SB10001424052702304157204579471460098535586-lMyQjAxMTA0MDMwMTEzNDEyWj?mobile=y

[h_man_investor]

I've bought all over the place. You need to take liquidity when you can.

Check this out: http://m.us.wsj.com/article_email/SB10001424052702304157204579471460098535586-lMyQjAxMTA0MDMwMTEzNDEyWj?mobile=y

[insomniac]

My recollection is that ,there was minor(1/3float) participation in the 16 dollar tender way back when. I thought you may know of some big players.
A couple of months ago , you seemed more optimistic about this sled.."Wash Rinse etc..."
What did you pay for your stock back then? Wasnt it trading around 12-13?
In any case , lets find some new issues to mess with...

[h_man_investor]

I know if no institutions or anyone who owns. The security is extremely illiquid and any seller will push down the price. Whoever is currently selling is sick of waiting and sees other opportunities.

[insomniac]

Do you know of any large institutions that are still in this stock.? Im not sure what im gonna do with this position..Im still up on it, but I am not crazy about giving back profits.. If it takes as long as you think it may to work, It could likely pull back further , especially if the market continues to weaken.

[h_man_investor]

To clarify, I'm not saying they don't have an exit strategy but saying that they have no exit under the current structure.

I'm also going to predict that they unwind Orkney II by the end of 2015.

[h_man_investor]

Pretty simple. They have no exit strategy. They can't sell the entire thing or pieces and they are trying to maximize value before the mandatory convert. That's why they bought the common and did the tender. My guess is that they tender before the convert which is May 2016. Then after that it's a waiting game until a liquidity event.

They can't tender until after the lawsuit is settled so that is a big determinant. $18 is my guess and I'm happy to take liquidity.

Realistically you need to look at a preferred with no coupon and a redemption at $25 in 2018. It's it worth the wait?

[insomniac]

I did sell the majority of my shares at 8 and again at 16. Nonetheless,I still have some left,and in hindsight I should have dumped all of it... What about you ? Wash rinse repeat? Are you still in this puppy??
It looked like someone bought 2000 shares at $11.80 on Friday, only to have shares then dumped and here we are down to 11 again.
Do you think a future tender offer is off the table???

[h_man_investor]

You should have sold at $16! There have been plenty of opportunities to buy well below that price.

Not sure if you noticed but in the last two reports the company stated that they are in contact with regulators and ceding companies about assuming new reinsurance risk.

Otherwise nothing too interesting. Preferreds still out of the money in a change in control event. Lower interest rates are helping them. 2 more years until the mandatory convert.

You have anything to say?

[h_man_investor]

You should have sold at $16! There have been plenty of opportunities to buy well below that price.

Not sure if you noticed but in the last two reports the company stated that they are in contact with regulators and ceding companies about assuming new reinsurance risk.

Otherwise nothing too interesting. Preferreds still out of the money in a change in control event. Lower interest rates are helping them. 2 more years until the mandatory convert.

You have anything to say?

[insomniac]

H What's your take on the numbers? R U still washing and rinsing, or you pulling the plug and let the water drain.

[h_man_investor]

I found it. N.Y. state supreme court.

[insomniac]

NOPE

[h_man_investor]

Have you found the Davis lawsuit anywhere? I checked PACER and couldn't find it.

[insomniac]

Time to shut off the washing machine to save electricity.-)

[h_man_investor]

Money good in 2019. Haha.

[h_man_investor]

http://m.us.wsj.com/article_email/SB10001424052702304157204579471460098535586-lMyQjAxMTA0MDMwMTEzNDEyWj?mobile=y

[insomniac]

Whats your take on the latest results?

[insomniac]

H Heres another cum pref bank stock... theres still about 5 bucks to be made by year end...HGUBP it is very thin, but It looks very strong financial wise... also to pay back 5 years worth of divi's . Selling for 32 today... Keep me posted on SKRUF. Best of luck to you and me .-)

[h_man_investor]

Wow that's huge. Congrats.

[insomniac]

H man

What happened to you ???
FBS-A / FBS-pa paying defered Cumulative Divi's of 11+ bucks..

[insomniac]

Not sure that penny stock, is going to work out..

[insomniac]

H What are you anticipating?? A new higher tender offer,from SKRUF?? Id like to see 20 bucks.
Do you follow oil stocks??? I got a penny stock that is loaded with cash, sells at 1x ebidta and is pumping 6300 barrels of oil a day...It;s called Petroamerica.. Ticker is PTAXF,, is selling for 31.5 cents.. I would like you to take a look at it and tell me what you think.. It is in Columbia, but I hear the government is quite stable and business friendly.. If the government bonds is any indication, they have a low interest rate under 4% .. Puerto Rico is close to 14%as an example, It looks like an over looked situation... Your input is appreciated as I know your a numbers guy...There supposed to be updating the results of two wells by year end... It trades more in canada under the symbol pta.v.. Merry Christmas

[h_man_investor]

Accumulating shares below the tender offer price. Wash, rinse, repeat.

[insomniac]

H-Man You still alive and kickin??? What are you up too??

[insomniac]

HI H-Man..I am fine thanks. Good to see your still around... As to your question,, I have no idea...Im still in this stock simply because I have to park some money somewhere, and this is my smallest position . Did you ever look at FBS-pa ?? I started buying it at 7 and its now 30 bucks.. Theres still 5 bucks more for it to go.. I also bought Mill about three months ago and its up 50%. Dangerous stock though.. What are you buying?
Question... I know your in the biz ,, what exactly do you do??

[h_man_investor]

Hey- how you been? Any idea if the dividend paid last year reduces the liquidation preference in a change of control?

The change in control liquidation preference accrues for 5 years which ended last May. It should max out at $217.5mm yet the company is still increasing the liquidation preferenceon the balance sheet above this amount.

It isn't clear what happens in the event of a change in control if the dividends paid reduce the$217.5mm amount.

[h_man_investor]

Same as its been. Senior in a wind up or liquidation and junior in a change in control.

The clock is ticking- the preference shares convert to common stock in 3 years.

[insomniac]

SO where is SKruf in the pecking order???

[h_man_investor]

I found it. The dividend accrues until the fifth anniversary of the issue date (5/7/07). So it looks like the liquidation preference will stop increasing in this quarter.