Markel CATCo Investment Management acknowledged the delay to the buyout process for its retrocessional reinsurance investment funds this morning, but said that any challenges from investors would be vigorously defended against.
We reported yesterday that the buy-out process for its retrocessional reinsurance investment funds was set to drag on, after a court appearance in Bermuda ended with Markel agreeing to provide additional information to creditors.
Markel CATCo confirmed this today, saying that at the Bermuda hearing, “the Court entered an order agreed with the Funds that adjourned the Scheme Convening Hearing to 7 December 2021.”
We explained in our article that we understood this would drag the process into 2022.
“As a result of the adjournment of the Scheme Convening Hearing, the timeline for closing of the Buy-Out Transaction will unavoidably be extended and it is expected that closing and related distributions should occur during the first quarter of 2022,” the investment manager also confirmed.
As of today, the Extended Early Consent Deadline that Markel CATCo had offered to investors in the retro reinsurance funds, when it updated and improved the buyout terms, has now passed.
Support is strong for the buyout it seems, with Markel CATCo now reporting that investors representing 92% of the private fund, the Markel CATCo Reinsurance Fund Ltd. and investors representing 96.5% of the listed and public CATCo Reinsurance Opportunities Fund Ltd. have given their support for the proposed buy-out terms.
It is a significant percentage, but there remain challenges to the process as well.
At the next hearing in Bermuda, now scheduled for December 7th, Markel CATCo said that there is a small group of investors in the private fund that “intend to bring challenges at the Scheme Convening Hearing.”
Markel CATCo said that it, and the funds, “believe that there are robust arguments against these challenges and intend to vigorously defend the Schemes.”