Markel CATCo buyout support undertakings extended to end of February 2022

As the proposal of a process to buyout investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds has been drawn out by legal appearances and is now waiting for a court decision to proceed, the investment manager has extended the expiry date of the support undertakings it received from investors.

Previously, Markel CATCo had said it received strong support from the investors in both its public and private retrocessional reinsurance funds.

In fact, investors representing some 92% of the private fund, the Markel CATCo Reinsurance Fund Ltd., and investors representing some 96.5% of the listed and public CATCo Reinsurance Opportunities Fund Ltd., had given their support for the proposed buy-out terms.

Earlier in the buyout process, investors were asked to sign an undertaking that committed their support to the process and also confirmed that they wouldn’t make any claims against Markel CATCo.

Through the signing of these support undertakings, Markel CATCo wanted to secure the capital and protect the fund’s against any claims, to enable a speedier resolutions and return of the capital to the investors in the Markel CATCo funds.

As we explained last week, it seems progress in the buyout of investors in the Markel CATCo  investment funds is unlikely to be made until next year, as the investment manager said a court decision is unlikely to come until January 22nd 2022.

It seems the decision to extend the validity of the support undertakings is because of this delay and to cover any further eventualities, Markel CATCo has extended them to February 28th 2022, the ILS manager said today.

The company said that, “The expiry date of the support undertakings into which both Private Fund and Public Fund investors have entered has been extended by majority approval in accordance with their terms, to 28 February 2022.”

This gives some additional leeway for any further delays due to the court process taking longer than expected.

Also read:

– Markel CATCo says court decision on buyout hoped for in January.

– Markel CATCo to “vigorously defend” investor challenges.

– Markel CATCo buyout process facing challenges as court calls for more info.

– Judge grants Markel CATCo Chapter 15 bankruptcy relief.

– Pension Insurance Corp says to decline revised Markel CATCo buyout offer.

– Updated Markel CATCo buyout could deliver 18.5% more to retro investors.

– Investor terms improved in Markel CATCo buyout.

– Markel CATCo buyout proposal challenged by Pension Insurance Corporation (PIC).

– Markel CATCo in bankruptcy filing. Danish pension PKA revealed major holder.