Glacier Re extends Nelson Re catastrophe bond again

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Unsurprisingly the Nelson Re Ltd. catastrophe bond saga has not yet been resolved. The uncertainty revolves around whether the investors in the Class G tranche of cat bond notes issued by Nelson Re will face a loss or not, ultimately due to hurricane Ike losses. The disagreement between the sponsor Glacier Re and others including the administrator of the SPV over whether a loss payment is due under the terms of the notes and the underlying reinsurance contracts continues.

Last time we wrote about Nelson Re it had been announced that Glacier Re would take Nelson Re to arbitration over an amount of around $20m which Glacier Re believes it is due.

We assume that the arbitration process is ongoing and as the original extension of the Nelson Re notes was only until the 6th March, Glacier Re have applied to have the cat bond deal further extended to 6th June 2012.

We’ll update you if we hear anymore about Nelson Re and whether Glacier Re get the payment they are seeking. You can read all of our previous coverage on the Nelson Re cat bond here.

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