The drama at Towergate continues, leaving staff and customers wondering what is going on and where the future lies. The insurance industry's Insurance Age reports:
Reports suggest
unsecured creditors in deal to take hold of the troubled consolidator.
The takeover of
Towergate has taken a new twist with reports that unsecured creditors are set
to grab hold of the business.
According to the Financial
Times the move will involve a cash injection of £300m from the junior creditors
led by Highbridge Capital Management - an arm of JP Morgan - and involving
private equity firm KKR, and Sankaty Advisors, a global credit specialist.
On Monday Towergate
announced that it was in the process of selling to secured creditors in a move
that would halve its debt.
The plan was to swap the
debt of existing senior secured creditors into £375m of new debt, £150m of
payment in kind notes and 100% of the firm's shareholding.
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