Scottish Re may miss Oct. 15 perpetual preferred dividend payment

By Caroline Salls

Pittsburgh, April 14 - Scottish Re Group Ltd. said it may not meet some of the financial tests required for it to make the Oct. 15 dividend payment on its non-cumulative perpetual preferred shares, according to a news release.

The company said it might not be able to pay the dividend unless it increases the adjusted shareholders' equity amount by generating earnings or issuing new ordinary shares.

Scottish Re said the amount by which it must increase the ASEA to make the Oct. 15 dividend payment cannot be determined until the company finalizes its financial results for the year ended Dec. 31.

In addition, the company said it cannot provide the results of its trailing four quarters consolidated net income amount or its ASEA for the dividend period because it has not finalized the year-end financial results.

Scottish Re said its revenues for the year ended Dec. 31, 2007 will decrease, and the company expects its 2007 net loss to be higher than its 2006 net loss.

If the expected results are realized, the company said its trailing four quarters consolidated net income amount will be less than zero and the ASEA will have decreased by more than 10%, both of which will keep the company from making the Oct. 15 dividend payment.

Scottish Re is a global life reinsurance specialist located in Hamilton, Bermuda.

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