SPA has led to troubles for the group, together with a notable loss in its This fall outcomes
Bermuda-based James River Group has initiated a lawsuit in opposition to Fleming Intermediate Holdings, a portfolio entity of Altamont Capital Companions, searching for to compel Fleming to stick to situations of a inventory buy settlement (SPA) in regards to the acquisition of JRG Reinsurance Firm Ltd. (JRG Re).
The authorized motion, filed within the Business Division of the Supreme Courtroom of New York County, facilities on Fleming’s alleged failure to finish the acquisition of JRG Re, a deal poised for closure upon securing all requisite regulatory nods.
James River’s authorized submitting recounts that Fleming, on the eve of the anticipated closing, withdrew from the settlement. The corporate is accused of not collaborating within the ultimate closing name and searching for substantial alterations to the phrases of the transaction on the final minute.
James River asserts that it has fulfilled all contractual obligations vital for the deal’s conclusion, first publicized on November 8, 2023. The insurer now seeks the court docket’s pressing intervention to implement the SPA, thereby obligating Fleming to proceed with the acquisition as initially agreed.
The group’s earlier introduced sale of JRG Re has resulted in a number of hassle for James River. In December, a regulation agency initiated investigations in opposition to the holding agency over what it alleges to be a scarcity of efficient controls over reinsurance.
Earlier this yr, James River and its subsidiaries – together with JRG Re – had been hit by downgraded scores from AM Finest following what was perceived to be materials weak spot in its inside management over monetary reporting and the plans to dump JRG Re. This downgrade was adopted by a internet loss realized in its This fall 2023 monetary outcomes, which revealed a notable $80.4 million loss associated to the sale.
In mild of this new swimsuit, Frank D’Orazio, CEO of James River, acknowledged the corporate’s dedication to defending its pursuits and people of its shareholders vigorously.
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