Scottish Holdings granted approval to enter Hudson exclusivity letter

By Caroline Salls

Pittsburgh, Feb. 28 – Scottish Holdings, Inc. received court approval to enter into an exclusivity agreement in connection with transaction negotiations with former stock purchase agreement stalking horse bidder Hudson Structured Capital Management, Ltd., according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Hudson was the stalking horse bidder for the stock purchase, but Hildene Re Holdings, LLC was the winning bidder.

However, Scottish said in the motion that issues related to regulatory approvals and, later, the debtors’ financial performance, delayed the closing of the Hildene transaction.

Scottish said the Hildene agreement was terminated on Feb. 16, and the company contacted Hudson that day regarding the potential to negotiate a new transaction.

The company said, “Hudson has indicated a willingness to consider pursuing a new transaction with the debtors,” but only if it receives an exclusivity period, if the Scottish debtors reimburse Hudson affiliate HSCM Bermuda Fund Ltd. for up to $125,000 of expenses and if the debtors immediately pay HSCM Bermuda Fund a $1.25 million expense reimbursement due under the original stalking horse agreement.

Scottish Re Group Ltd. is a Hamilton, Bermuda-based life reinsurance company. Its Cayman Islands and U.S. subsidiaries filed bankruptcy on Jan. 28, 2018 under Chapter 11 case number 18-10160.

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