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Re: insomniac post# 231

Sunday, 12/16/2018 11:05:04 AM

Sunday, December 16, 2018 11:05:04 AM

Post# of 270
Scottish Re is very early in its process.

A better question might be how much can SKRUF holders expect to receive? At 9/30/17, Scottish Re only had $3.6 million in equity, which means that the most SKRUF holders could expect would be $1.12 per share unless liabilities are settled for dramatically less than book value during the liquidation process.

LaSalle Re Holdings is probably the best case study regarding time.

Its liquidation took almost ten years.

Insolvency proceedings were initiated in 8/20/03. At 6/30/03, the last period that financials were reported, shareholders' equity was $44.7 million. Series A had a total liquidation value of $75 million, which meant the maximum recovery would never be higher than 60 percent.

LaSalle Cover Company LLC launched a tender offer late in 2004, initially offering $1 per share. LCC's members were Costa Brava Partnership III, LP and White Bay Capital Management LLC. The general partner of Costa Brava Partnership III, LP was Roark, Rearden & Hamot LLC. Seth W. Hamot was the sole member and manager of Roark Rearden & Hamot LLC and Andrew R. Siegel was sole member and manager of White Bay Capital Management. The offer was increased to $1.17 with LCC eventually owning 1,271,179 shares or 42.4 percent.

The liquidation resulted in a distribution to LaSalle Re of approximately $37 million. LSRAF holders eventually received $10.60. The first $10.50 was paid on 7/28/08, and the final liquidation dividend of $.10 was paid on 2/15/13.

"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International