Replies to post #8994 on Trenwick Group, Ltd.(fka TWKGQ)

[Dondoodit]

Thought about your comment some more, and I am not sure any lawyers will be disbarred when the stock disappears, because I am not sure that any of them ever guaranteed perpetual life for the stock and I am not sure any lawyers were in a position to make such a guarantee.

If you recall, it was the bondholders that said that it was their intent not to affect the survival of the shares, which is exactly what you would have expected them to say at the time. This was, after all, in the immediate aftermath of the original bankruptcy filings and one of the prospects at the time would have had to have been converting debt to equity. Thus the bondholders would certainly not want to cut short the life of the stock.

As for "Arpad agreeing that the stock would survive," what could he know? He had demonstrated on the Yahoo board incredible ignorance of insurance accounting and the regulatory process before, during, and immediately after the bankruptcy filing, then, when another cohort was unable to find a lawyer to take the case, he made a silly attempt in the courts to force an equity committee into the process. He was not a representative of the company and from all appearances no representative of the company made any statements that possibly could be interpreted as guaranteeing the survival of the shares.

[lifegear]

what happened to this commission agreement?

http://www.insurancejournal.com/news/international/2002/05/17/16239.htm

Endurance will acquire LaSalle, also based in Bermuda, through a 100% quota share reinsurance agreement, with Endurance paying Trenwick a ceding commission of 25% and additional profit sharing of 50% if losses do not exceed a 45% loss ratio. Endurance will have the right to renew LaSalle's in-force business as it expires in exchange for a 12.5% commission on the business renewed.

LaSalle had $133 million of premiums in force in 2001, and as of April 1, 2002, it had approximately $60 million in net unearned premium reserves. 20 LaSalle employees have been offered positions at Endurance, potentially bringing its Bermuda-based staff to over 60.

Under the terms of the agreement, Endurance will assume 100% of in force property catastrophe business of LaSalle Re as of April 1, 2002, but will not take on any past liabilities from LaSalle Re.