R&Q Insurance to go ahead with provisional liquidation

Alternative structure considered "the best option" at this time

R&Q Insurance to go ahead with provisional liquidation

Mergers & Acquisitions

By Terry Gangcuangco

R&Q Insurance Holdings will be filing for provisional liquidation in Bermuda as part of an alternative structure proposed by the buyer of its program management business Accredited.

As previously announced, funds advised by Onex Corporation had suggested an alternative transaction structure that could be utilized if the original sale’s closing conditions could not be met. The option would involve R&Q’s provisional liquidation in Bermuda.

After thorough consideration, including an assessment of the company’s current cash resources, the R&Q board has determined that the proposal by Onex is “the best option” to secure value at this time.

R&Q noted in an update: “The implementation of the alternative proposal will involve the company filing for a provisional liquidation in Bermuda, and the board expects the sale of Accredited to Onex to then be implemented through that process.

“The provisional liquidators would then look to realise value from the company’s remaining assets, at the end of which the remaining company would be wound up. The directors believe that, in those circumstances, there will be very little, if any, chance of any value accruing to the company’s shareholders.”

Under the plan, R&Q requested that trading in its ordinary shares on London Stock Exchange’s AIM be suspended effective immediately. It will be filing for provisional liquidation in due course, R&Q said.

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