Scottish Re Group Ltd (fka SKRRF)

[zino]

NEXT VSTNQ... SKRRF 10.56 EARNINGS P/SHARE TRADES AT 14 CENTS !!! http://www.snl.com/irweblinkx/file.aspx?IID=4021224&FID=9451272 net income attributable to ordinary shareholders of $2,305 million, or $10.56 per diluted ordinary share, as compared to a net loss attributable to ordinary shareholders of $2,710 million, or ($39.63) per diluted ordinary share, for the prior year period.

The net income attributable to ordinary shareholders for the year ended December 31, 2009 was driven primarily by the following significant one-time items:
-- A pre-tax gain of $704 million associated with the sale to Hannover
Ruckversicherung AG of a block of U.S. individual life reinsurance
business acquired by the Company from ING in 2004;
-- A $1,150 million gain generated by the de-consolidation of Ballantyne Re
plc from the Company's consolidated financial statements; and
-- A $254 million gain on the consolidation of the Stingray funding
arrangement following the Company's discounted purchases of a majority
of the outstanding Stingray pass-through certificates.


In addition, the Company had net realized and unrealized gains of $243 million resulting from an overall market recovery of fixed maturity investments

[zino]

F means foreign not bankrupt .... http://www.investopedia.com/ask/answers/04/022004.asp Below is a complete list of fifth symbols on the Nasdaq and what they mean:A - Class A
B - Class B
C - Issuer qualifications exceptions
D - New
E - Delinquent in required filings with the SEC
F - Foreign
G - First convertible bond

[steveross]

BV is Book Value

[insomniac]

Steve
What is BV ?

[steveross]

Will SKRRF break through 20cents? I would think it to be worth alot more than 14cents.... BV is nearly $3.00 This is ridiculous. Anyone know why it's at this level and where do you think it's going to?

[insomniac]

I wish they'd move the bid up on the common.. I hate that 2cent spread.

[Enterprising Investor]

No tender for me.

Sold 1,500 at $8.00. The $8.70 yesterday surprised me, but it did not stick. It may go higher from here.

My average cost was $3.29.

In case anyone feels the need to verify:

500 Executed. On 05/11 at 12:53 at 8.00 . To be settled by 05/14. 500 Executed. On 05/11 at 12:54 at 8.00 . To be settled by 05/14. 500 Executed. On 05/11 at 12:55 at 8.00 . To be settled by 05/14.

[g2nec]

nounces Tender Offer to Purchase for Cash Any and All of its Outstanding Non-Cumulative Perpetual Preferred Shares
Friday 05/07/2010 4:13 PM ET - Businesswire

Related Companies
Symbol Last %Chg
SKRRF 0.14 16.67%

As of 1:09 PM ET 5/11/10
Scottish Re Group Limited ("Scottish Re" or the "Company") (Pink Sheets:SKRRF) has commenced a cash tender offer for any and all of its outstanding Non-Cumulative Perpetual Preferred Shares, liquidation preference $25 per share (collectively, the "Perpetual Preferred Shares").

The tender offer is being made pursuant to the Offer to Purchase, dated May 7, 2010 (as it may be amended and supplemented from time to time, the "Offer to Purchase"), and the related Letter of Transmittal, dated May 7, 2010 (as it may be amended and supplemented from time to time, the "Letter of Transmittal" and, together with the Offer to Purchase, the "Offer"), which set forth the full details of the terms and conditions of the Offer.

BofA Merrill Lynch is serving as Dealer Manager for the Offer. Brokers and other persons with questions regarding the Offer are encouraged to contact BofA Merrill Lynch at [phone] or toll-free at [phone]. Requests for documents may be directed to D.F. King & Co., the Information Agent, at [phone] or [phone].

This press release is neither an offer to purchase nor a solicitation of an offer to sell the Perpetual Preferred Shares or any other security. The Offer is made only by the Offer to Purchase and the Letter of Transmittal. The Offer is not being made to security holders in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Offer is required to be made by a licensed broker or dealer, it shall be deemed to be made by the Dealer Manager on behalf of the Company.

About Scottish Re

Scottish Re is a global life reinsurance specialist, with operating businesses in Bermuda, Ireland and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited and Scottish Re (U.S.), Inc. Additional information about Scottish Re can be obtained from its Web site, www.scottishre.com.

SOURCE: Scottish Re Group Limited

Scottish Re Group Limited
Media and Investor Contact:
Dan Roth, Chief Financial Officer, 441-298-4373


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Recent Headlines
Scottish Re Group Limited Announces Tender Offer to Purchase for Cash Any and All of its Outstanding Non-Cumulative Perpetual Preferred Shares
Friday 05/07/2010 4:13 PM ET - Businesswire
Scottish Re Posts to its Web Site Financial Statements for the Year Ended December 31, 2009
Friday 04/30/2010 5:00 PM ET - Businesswire

[g2nec]

Yep, I have bought it sown, should be real nice payoff

[bwana12]

For what its worth, yesterday I stayed till 10 PM at my office doing a carefull review of the basics for SRe. It was time very well invested, and I ended up being highly reassured in my convictions as to what will most likely happen with this company. Let the $7.60 bid speak for itself (as compared to the $5.00 tender price).

Best of luck to all!

[insomniac]

E I Did you ever get through to Dan Roth..????

[cazes1]

I think I will just hold the shares I have and see how well they do, and buy the way your right Ive got an average cost per share of 6.60 so I guess I must have gotten about 1,000 of them for 6.00 and the other 1,000 for 7.20 and that sounds about right because i am only up about $2000.00 I just looked at it.

P.S.

You guys are pretty smart!!!

Thanks,

Cory

[h_man_investor]

You are very savvy. You should buy more shares and tender them.

[bwana12]

Following is a cummulative volume and price table taken from Pinksheets.com for today. There were 1,000 shares traded at $6.00 (the difference in volume between 2,000 at 8:37 and 3,000, at 8:59, as the table accumulates trades). It never went back again.

Corey, I'll believe you did 1,000 shares at $6.00. That's all.



<< Back to Chart
Historical Chart Data Download Spreadsheet

Date Open High Low Close Volume
10:30 AM 7.75 17,900
10:25 AM 7.75 17,400
10:24 AM 7.75 15,900
10:23 AM 7.75 15,400
10:19 AM 7.20 14,000
10:17 AM 7.20 12,500
10:15 AM 7.20 9,000
10:10 AM 7.20 4,000
8:59 AM 6.00 3,000
8:37 AM 7.20 2,000
< prev123next >

[cazes1]

I REALLY DID I GOT 2000 AT 6.00 PER SHARE!I AM UP 3200.00 IN A DAY PAID 12,009.99 AND CLOSED AT 15,219.00 FOR THE DAY!!

SWEET!!!!

[insomniac]

YOu said you bought 2000 shares "TODAY" at 6.. Your full of s--t
Now get back to bed pans I think youve been sniffing to much methane

[cazes1]

insomniac,

You have got me rolling lmao!!!
Its true they were not trading that in a day, but today was different. I can't wait till tomorrow.

Take care,

Cory

[insomniac]

Its funny... It didnt trade nearly that amount at 6 bucks. Youve gone from Reckless to guilty of Terminilogical Inexactitudes.. Have you mamed any of your patients yet?? Im sure you will..

[cazes1]

Hey,

H_man_investor

I bought 2000 shares of the preferred this morning for 6.00 per share should see a nice return here.

Thanks,

Cory

[Enterprising Investor]

Mr. Market has reacted.

Arbs have taken it to $8.70 intra-day.

I attempt to speak with CFO Dan Roth this afternoon.

[cazes1]

Looks like the preferred shares are selling for more than 5.00 a share Hmm... They are trading for $7.75 per share right now up %19.23 and volume is way up somebody's buying and they are giving more than 5.00 per share lol!!!!

Cory

[OTC BB King]

Anything exciting been going on around here lately?

[bwana12]

I have no clue???? Please!!!

So you figure because a subisdiary of a group of companies just happens to be the one with the investments, you can just forget about the rest of it at the parent???? How about rechecking that Balance Sheet of yours for SALIC and telling me how come it does not have the Mezzaninine Equity, and the Perpetual Preferred??? Ohhhh, maybe something magical happened and you are very smart and just found that out??? NOOOO. It so happens that SALIC is just a subsidiary of Scottish Re, and the securities you and the rest of us are holding were issued by the latter.

You HAVE to be kidding me.

[Enterprising Investor]

Never counted - until today!

With a little help from UCLA Professor Lynn M. LoPucki's list of 886 on his website, I can actually provide a list of firms that filed for bankruptcy.

Acceptance Insurance Companies [P]
Beker Industries Corp [D]
Best Products Co [S]
Braniff International Corp (1982) [S]
Charter Co [P]
Coleco Industries Inc [D]
Dana Corp [S]
Delphi Corp [S]
First City Bancorporation of Texas Inc [S]
Fremont General Corp [S,P,D]
General Motors Corp [D]*1
Guaranty Financial Group Inc [S]
Lehman Brothers Holdings Inc [CT,D]
LTV Corp (1986) [D]
McLean Industries Inc [D]
Meruelo Maddux Properties Inc [S]
New Valley Corp [P]
Northwestern Corp [P]
Pacific Gas & Electric [P]
Public Service Co of New Hampshire [D]
Southeast Banking Corp [S]
Southmark Corp [D]
Sun-Times Media Group Inc [S]
Thornburg Mortgage Inc [S,P,D]
Tower Automotive Inc [S]
Worldcom Inc [D]

S = Stock
P = Preferred or equivilent (CT, TOPrS, etc)
D = Debt

1 CCYPQ

All represent actual Q investments. I have reviewed many times more.

I focus on three areas: (1) Relatively unpopular large companies (2) Bargain issues; and (3) Workouts

Unpopular large companies can lead to spinoffs/liquidations (Ralston Purina and Temple-Inland). The last 18 months to two years have provided numerous opportunities in distressed financials and real estate - GMAC, Ford Motor Credit, Forest City Enterprises, etc.

Finally, I have never calculated rates of return. However, I do know my portfolio is up 400 percent in the last 18 months or so. Something that hopefully I will not be able to replicate. The world would have to be really screwed up again. I lost 60 percent just prior to the large run up like many others.

[cazes1]

You have no clue as to what your talking about!!!!The number starting the balance sheet on both is the same look at it because you are wrong!!!!!!!!!

[bwana12]

WRONG! The difference between the April 30 and the may 7 numbers is the company they are referring to. It's SALIC in May, SRe in April. NOT comparable at all!!

[cazes1]

I am currently working as a cna, but I do have a bachelors in business administration with a concentration in finance from UGA.

Cheers,
Cory

[LouMannheim]

How many distressed/Q deals have you done? What type of returns?

[h_man_investor]

I was wondering about the "sticky note." I will caveat my comment by saying that I was assuming the full liquidity preference for the C/MM preferreds.

I guess we'll see!

[Enterprising Investor]

Explanation of "sticky note" status for 1484.

First, I have no ill will against h_man-investor or anyone else here. I just want to make sure there is a record of the "over/under" when it comes to timing.

In theory, if the tender that I predicted in 2010 would be 100 percent successful at $5, equity will become positive (5 million x $20 = $100 million). It won't. It will take a higher offer.

I would also like to clarify my definition of "run rate". Normally, this would pertain to operations. This is a salvage operation, so I meant it in liability management terms. The management of SKRRF is going to seize whatever opportunities exist to buy back the "right side" at a discount. You get a double benefit from buying back liabilities - creates gains from early extinguishment of debt and lowers interest expense.

The big difference between distressed companies and Q's is that management of those in Chapter 11 cannot do any "right side" work. It requires a payout in a plan.

And I like to buy Q debt.

[genlou]

Thanks, Cazes1 you made my day!

[insomniac]

Cory..What do you do for a living? Just curious.

[cazes1]

The financial statement for year end 2009 dated may,7,2010 has exactly the same starting number as 04,30,2010 just a different outcome they both start out with a $2,988,164 billion dollar number.I think you guys should compare the numbers and you will find that the April,30,2010 numbers are wrong and have been restated in the May,7,2010 numbers and the May,7 financial shows shareholder equity of $634,810,000 million and this is right at $3.00 book value per share! I know I am right and they have BofA Merrill Lynch working on the cash tender offer for the preferred shares and this is a pretty good sign.

Cheers,

Cory

[Enterprising Investor]

No change at all.

The thing everyone needs to take into account is that those financials represent 12/31/09. The 1Q results are due within six weeks. Plus, we are nearly half way through 2Q.

The tender offer is informational in my mind.

[insomniac]

I have no intention of selling my preferreds.
What I want to know is.. Do the new numbers for the sub, change the previous for the parent in any meaningful way??I wouldnt think so.. However im still very surprised that the sub is doing that well. Thanks in Advance..

[cazes1]

The liquidation preference is $25.00 per preferred share I don't know where you guys are getting $5.00 per share read below and it tells you $25.00 per share k.

HAMILTON, Bermuda--(BUSINESS WIRE)--Scottish Re Group Limited ("Scottish Re" or the "Company") (Pink Sheets:SKRRF - News) has commenced a cash tender offer for any and all of its outstanding Non-Cumulative Perpetual Preferred Shares, liquidation preference $25 per share (collectively, the “Perpetual Preferred Shares”).

The tender offer is being made pursuant to the Offer to Purchase, dated May 7, 2010 (as it may be amended and supplemented from time to time, the "Offer to Purchase"), and the related Letter of Transmittal, dated May 7, 2010 (as it may be amended and supplemented from time to time, the "Letter of Transmittal" and, together with the Offer to Purchase, the "Offer"), which set forth the full details of the terms and conditions of the Offer.

BofA Merrill Lynch is serving as Dealer Manager for the Offer. Brokers and other persons with questions regarding the Offer are encouraged to contact BofA Merrill Lynch at [phone] or toll-free at [phone]. Requests for documents may be directed to D.F. King & Co., the Information Agent, at [phone] or [phone].

This press release is neither an offer to purchase nor a solicitation of an offer to sell the Perpetual Preferred Shares or any other security. The Offer is made only by the Offer to Purchase and the Letter of Transmittal. The Offer is not being made to security holders in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Offer is required to be made by a licensed broker or dealer, it shall be deemed to be made by the Dealer Manager on behalf of the Company.

About Scottish Re

Scottish Re is a global life reinsurance specialist, with operating businesses in Bermuda, Ireland and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited and Scottish Re (U.S.), Inc. Additional information about Scottish Re can be obtained from its Web site, www.scottishre.com.


Sentiment : Strong Buy

[Enterprising Investor]

Simple... do not tender.

I have explained my views as best I can. Most offers fail on the first run. A higher bid is in our future.

ML really did not do a good job when it came to advising the price. This may not be a NYSE issue, but historical pricing is readily available.

[h_man_investor]

send me a PM with your email address so you can forward (i will send you an email). Shaw is not open for business on Saturdays. Thanks.

[insomniac]

One thing for sure... With Merril doing the deal, this is no longer under the radar.. If theres any value here, well know on Monday.

All I know is,,, Im about to lose a few grand on my preferred.

[Enterprising Investor]

The financials released earlier are for the parent.

The latest is for the insurance sub. The first thing anyone should notice is the very different capital structure.

The Offer has a wonderful chart detailing the organizational structure.

[Enterprising Investor]

Information Agent is D.F. King.

I had the Offer and Transmittal sent to me via e-mail within four minutes. All it took was a call.

[h_man_investor]

where did you get the offer to purchase?

[h_man_investor]

if you go to the scottishre homepage there are two different financial statements in the left hand side of the page- one dated 4/30 and one for 5/7. Both are for December 31, 2009. The latest one has higher "total investments" and higher income statement.

Not sure why they are "restating" the numbers without a press release or some sort of explanation. I'll still looking around....

[insomniac]

Does anyone in here agree even slightly, with Corys shareholder equity number??
The preferred holders are getting screwed. Im not selling my Skruf at this price either.

[cazes1]

Positive equity!! MAY,7, 2010 Scottish Annuity & Life Company Ltd. 2009 Financial Statements (PDF)
We are at positive shareholders equity of 634,810,000 million that's a book value of 3.00 a share including preferred shares of mass and Cerberus which will convert to common automatically and will equal approx 218,000,000 shares all together.See the financial statements on Scottish re issued on May,7, 2010 for more details!! See below also!!

Equity end of year 2009
Total Scottish Annuity & Life Insurance Company (Cayman) Ltd. shareholder’s
equity (deficit) .................................................................................................. 634,810,000 MILLION!!!!

Yippie We are rolling now!!!!

See you guys Monday!!!

Cheers

Cory


Sentiment : Strong Buy

[bwana12]

Mr Market long ago stopped caring about SKRRF and SKRUF. Trading volume speaks for itself. The common? I think this tender means very little in the grand scheme of things. Still $0.50 max upside in my view.

[jackiebear]

With this news, what is the value the common shares.

[Enterprising Investor]

Exactly.

The company was public about its intentions to buy liabilities and SKRUF at discounts in any type of transaction.

SKRRF is paying a $.50 fee for each share purchased, so the real cost is at least $5.50.

Mr. Market will react on Monday, and the Arbs take it from here.

In any case, I am not tendering at this price.

[h_man_investor]

That's what I thought- maybe a large holder approached them to sell. This name is so illiquid that if anyone with size wanted to sell it would drive the price down significantly. So $5 may seem reasonable to a large holder.

But why would the company go to the expense of trying to get others to tender their shares if they could have bought a block directly from a large holder?

Is there anything in the MM/C docs or SKRUF prosectus that precludes them from a private purchase?

[bwana12]

I doubt they would get the tender going if they thought there would be no-one selling.

Maybe they've had some discussions.