LaSalle Re Limited Insolvent/Solvent Solvent Meeting Date 11 April 2007 Effective Date 2 May 2007 Bar Date 30 August 2007 Contact All Scheme Liabilities have been finally determined and all Payable Scheme Claims have been paid in full in accordance with the terms of the Scheme, as of 22 January 2008. e-Mail:schemeadmin@lasallere.com Website: www.lasallerescheme.com
Case: Trenwick Group Limited and LaSalle Re Holdings Limited
Joint Liquidators: Mike Morrison (Bermuda) John Wardrop (London)
Date of Appointment: 22 August 2003
Current Payment Percentage: Trenwick Group Limited 0% LaSalle Re Holdings Limited 100%
Background:
In August 2003, insolvency proceedings were initiated by the Company in both the United States and Bermuda. The Supreme Court of Bermuda (the “Court”) ordered that Michael Morrison, of KPMG Advisory Limited in Bermuda, and John Wardrop of KPMG LLP in England be appointed Joint Provisional Liquidators to the Company and Joint Liquidators of the Company’s parent company, Trenwick Group Limited (“TGL”).
Concurrently Trenwick America Corporation (“TAC”), along with the Company and TGL, filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code (the “U.S. Bankruptcy Code”) with the United States Bankruptcy Court for the District of Delaware (the “U.S. Bankruptcy Court”), to run in parallel with the provisional liquidation in Bermuda. In 2003 and 2004, the U.S. Bankruptcy Court approved the sale of the Company’s former UK-based affiliates and the reorganization of TAC, the holding company of TGL’s U.S. insurance entities, pursuant to which these former affiliates were separated and are no longer affiliated in any respect with the Company or TGL. Since there were insufficient assets to support the reorganization of the Company and TGL, the U.S. Bankruptcy Court dismissed the Company and TGL’s cases in 2004 in deference to the ongoing Bermudian liquidation proceedings.
Following the dismissal of their chapter 11 cases, the JPLs of the Company and TGL filed petitions under section 304 of the U.S. Bankruptcy Code and applications for certain injunctive relief (the “304 Petitions”) with the U.S. Bankruptcy Court. The impetus behind the 304 Petitions was to investigate, and, if appropriate, prosecute various claims and causes of action that might exist in favour of the Company and TGL, and to protect and preserve the Company’s and TGL’s assets. The relief sought in the 304 Petitions was granted by court orders of the U.S. Bankruptcy Court dated May 26, 2005.
The Company was placed into liquidation by the Court on April 15, 2005 and TGL was placed into liquidation by the Court on November 4, 2005.
Current status of the liquidation proceedings in Bermuda:
The Court approved the appointment of Mike Morrison and John Waldrop as the JLs of the Company by Order of the Court dated April 13, 2008.
The JLs have disclosed their intention to pay a first and interim liquidation dividend and set a bar date for the submission of proofs of claim.
LaSalle Re Limited (“LaSalle”):
LaSalle, a wholly owned subsidiary of the Company, is a Bermudian Class 3 registered reinsurance company (in December 2007 the Company successfully applied to the Bermuda Monetary Authority to have the Company reclassified from a Class 4 to a Class 3 reinsurer pursuant to the Bermuda Insurance Act 1978) and has been in run-off since 2002.
LaSalle proposed a Scheme of Arrangement under Section 99 of the Bermuda Companies Act 1981 (the “Scheme”) with its reinsurance creditors and the Scheme was subsequently approved by LaSalle’s creditors and sanctioned by the Court on April 27, 2007. Under the terms of the Scheme, Scheme Creditors were required to submit all reinsurance claims against LaSalle by August 30, 2007. In January this year, LaSalle paid its final remaining reinsurance liabilities under the Scheme and the Scheme was terminated on January 22, 2008.
Following the completion of the Scheme, LaSalle was placed into members’ voluntary liquidation on March 13, 2008. Mike Morrison and Malcolm Butterfield were appointed Joint Liquidators by resolution of LaSalle’s board. LaSalle’s net assets at the time of entering voluntary liquidation were approximately $38.1 million.
Shortly after their appointment the JLs, LaSalle made a special dividend to the Company of $6.5 million in order to allow the Company to settle its accrued liquidation fees and expenses, pay-off its outstanding bank loan and to settle its liabilities in respect to other third parties. The JLs intend to distribute LaSalle’s remaining shareholder surplus of approximately $31.5 million to the Company on or before July 28, 2008.
To contact the Joint Liquidators staff:
Bermuda Mike Morrison KPMG Crown House 4 Par-la-Ville Road Hamilton HM08 Bermuda London Michael Tagg KPMG LLP 8 Salisbury Square London EC4Y 8BB United Kingdom
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