I think it's 50-50 using the term "pari passu" meaning equal rights. Please note that this mentions that the INTERCOMPANY DEBT should be paid ahead of Lasalle which imho applies to the $67M in Notes owed to Trenwick Group and TAC. In other words, they could have already reserved the $1.82 per share distribution for us. TAC also owes Trenwick Group that $5M in Notes too.
"As part of the Barclays Sale, Trenwick and TAC released the Oaks from repaying the intercompany debt (the "Intercompany Debt") owed by them to Trenwick and TAC. In consideration for such release, LaSalle Re set up a new holding company, LSUK, a Bermuda company that is operated principally in the U.K. and is U.K. tax resident, which assumed the liability for the Intercompany Debt and issued to Trenwick and TAC subordinated promissory notes (the "LSUK Notes") in exchange for and in respect of such Intercompany Debt.
Upon the winding up of the Oaks' financial affairs, which is not anticipated to occur prior to 2009, their economic interests, consisting of profits, if any, from their underwritings, together with any cash held in trust at Lloyd's to support underwriting activities released to them by Lloyd's, would be used to repay their creditors, including the LoC Banks, and the INTERCOMPANY DEBT, with the remaining amounts, if any, to be payable to LaSalle Re as LSUK's sole shareholder to the extent permitted under applicable law. In connection with LSUK's assumption of the Oaks' liabilities to Trenwick and TAC, LSUK has acquired 100% of the economic interest in the Oaks and
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20% of the economic interest in Flinstone Limited (a Corporate Capital Member formed by Magicsunny to support underwriting at Lloyd's for 2004 and subsequent years ("Flinstone")). The LSUK Notes, the LSUK Memorandum of Association and the LSUK Bye-Laws provide for payment to Trenwick and TAC from LSUK to the extent that funds are received, if any, from each of the Oaks.
Upon the consummation of the Magicsunny Sale, Trenwick's and TAC's rights to payment under the LSUK Notes were subordinated to amounts owing to the Banks under the LoC Facility, as amended in connection with the Magicsunny Sale. In addition, any amount payable to Trenwick and TAC pursuant to the LSUK Notes will occur only after the Letters of Credit issued by the Banks to support underwriting activities of the Oaks through year of account 2003, and Flinstone through year of account 2006, have expired and the Banks' claims under the LoC Facility have been satisfied in full. This may not occur until 2009. As a result of the priority of distributions contemplated, Trenwick and TAC would receive payment pari passu to one another from the respective Oaks that owe the debts to Trenwick and TAC through the Preference Shares; Oaks 1-3 will not fund amounts owing to Trenwick or TAC by Oak 4 and vice versa, although Oaks 1-3 will funds amounts owing to Trenwick or TAC by Oaks 1-3 in the aggregate."
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