New Stream looks to sell insurance portfolio for $127.5 million

By Caroline Salls

Pittsburgh, April 28 - New Stream Secured Capital, Inc. requested court approval to sell its insurance portfolio to Limited Life Assets Master Ltd. and Limited Life Assets Services Ltd. for $127.5 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company had originally planned to sell the insurance portfolio under its plan of reorganization.

However, because of plan confirmation delays, the company said it has decided to seek approval of the sale separate from the plan process to preserve the value of the portfolio and keep it from deteriorating while creditor group litigation proceeds.

Competing offers can be submitted until 5 p.m. ET on May 13, but New Stream said it believes the Limited Life bid represents the "highest and best price available" for the portfolio.

Any competing bids must exceed the Limited Life offer by at least $20.33 million, which includes a $3.83 million break-up fee, $1.5 million expense reimbursement and $15 million overbid amount.

Competing bids must also cover all amounts owed under New Stream's debtor-in-possession financing.

If competing bids are received, an auction will be held on May 16. Subsequent bids at auction must be made in increments of $500,000.

The sale is required to close by June 2.

New Stream, a Ridgefield, Conn.-based investment fund, filed for bankruptcy on March 13. The Chapter 11 case number is 11-10753.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.