R&Q Insurance coverage seals lock-up settlement

R&Q Insurance coverage Holdings, which is promoting its program administration enterprise Accredited to Onex Company’s Onex Companions, has disclosed developments relating to lender approvals and the monetary restructuring linked to the sale.

In accordance with R&Q’s replace, the corporate secured a lock-up settlement with a number of events on Wednesday. The settlement outlines a plan for restructuring sure money owed inside R&Q, with phrases permitting the events to consent to the sale as wanted.

Underneath the phrases of the lock-up settlement, the events concerned have dedicated to not pursue any enforcement actions relating to R&Q’s monetary obligations, pending the finalization of the restructuring and sale.

“The board of R&Q believes that the phrases of the lock-up settlement present R&Q with a steady platform on which the restructuring will be applied,” stated R&Q, which is able to stay in shut dialogue with its lending banks, suppliers of credit score, and different financing suppliers because it seeks to finalize the required documentation.

Along with securing lender assist, R&Q efficiently obtained essential regulatory approvals from the Malta Monetary Providers Authority, the Arizona Division of Insurance coverage, the Florida Workplace of Insurance coverage Regulation, and the European Fee. The corporate is optimistic about receiving the remaining nods nonetheless pending.

In the meantime, regardless of preliminary projections, the obtainable internet money proceeds from the sale at the moment are estimated between $65 million and $110 million, considerably diminished from earlier estimates because of unexpected prices and sure constraints.

Upon closing, the funds shall be directed in direction of decreasing the R&Q’s leverage whereas sustaining operational liquidity. R&Q additionally continues to interact actively with Onex to make sure the sale’s progress, focusing on a closing within the second quarter of 2024.

As for its legacy insurance coverage enterprise, R&Q stated its board continues to judge all choices to understand worth, together with ongoing buying and selling.

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