Courtroom delivers verdict in JRG Re case

James River has secured a authorized victory over specialist run-off reinsurer Fleming within the ongoing JRG Re acquisition saga, saying that the New York County Supreme Courtroom, Business Division, has issued a preliminary injunction in its favor.

This authorized directive mandates Fleming Intermediate Holdings, a portfolio entity beneath the aegis of Altamont Capital Companions, to finalize its buy JRG Re no later than April 16, 2024.

The court docket’s determination got here as a response to James River’s enchantment for a preliminary injunction to make sure the completion of the sale of JRG Re, as outlined within the Inventory Buy Settlement collectively agreed upon and signed by each events on November 8, 2023.

“We’re happy that the Courtroom has granted James River’s request for a preliminary injunction, compelling Fleming to finish the acquisition of JRG Re in accordance with the Inventory Buy Settlement that the events negotiated collectively and executed on November 8, 2023. We stay up for finalizing the transaction,” James River’s chief govt officer, Frank D’Orazio, mentioned.

Fleming has not responded to the court docket determination.

Earlier this month, Fleming mounted its personal authorized protection in opposition to the injunction, stating that the dispute was not about reconsideration of the acquisition however stemmed from what Fleming described as misleading practices by James River after the preliminary settlement.

“This isn’t a case of purchaser’s regret. It’s a bait and change,” the corporate mentioned in its filings. “Fleming was excited to purchase JRG Reinsurance and stays keen to take action.”

Fleming additionally indicated that it remained keen to finalize its buy of JRG Re, provided that James River corrects the recognized breaches within the contract, suggesting changes to reserves and liquidity to facilitate the transaction’s completion.

“Whereas Fleming will proceed to defend itself in opposition to this meritless lawsuit, we stay keen to accumulate JRG Reinsurance if James River cures its breaches of the settlement,” Fleming CEO Eric Haller beforehand mentioned.

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