Scottish Re Group Ltd (fka SKRRF)

[h_man_investor]

Help me out here- if the company is sold within 2 years as you indicated as likely, the mezz equity has a liquidation preference of $700mm which is greater than the $550mm on the balance sheet. So the hurdle is a little higher than $250mm for sh/e to be back to breat even.

Its not even a consideration that MM and Cerb convert their shares at $4 to make $0.50.

What am i not understanding? I believe MM and Cerb will attenpt to maximize the recovery of their investment. Selling the company or a change in control will trigger the liquidation preference and will have a higher IRR than seeing this run-off over the next 30 years. All private equity funds have a fund like of max 12 years- they are not interested in being in this for the long hall.