CATCo Reinsurance Opps Fund Ltd Distribution to Ordinary Shareholders (0989J)
August 02 2012 - 1:01AM
UK Regulatory
TIDMCAT
RNS Number : 0989J
CATCo Reinsurance Opps Fund Ltd
02 August 2012
CATCo Reinsurance Opportunities Fund Ltd. (the "Company")
Announcement of Distribution to Ordinary Shareholders
To: SFM, London Stock Exchange Date: 2 August 2012
and the Bermuda Stock Exchange
Contingent Distribution
The Board of the Company wishes to announce that it has declared
a distribution (the "Distribution") to Ordinary Shareholders of any
proceeds it receives in connection with that part of its investment
in CATCo Diversified Fund (the "Master Fund"), a segregated account
of CATCo Reinsurance Fund Ltd. (the "Master Fund SAC"), which is
exposed to potential losses arising from the Master Fund's
investment in reinsurance contracts linked to the New Zealand
earthquake that occurred on 22 February 2011 and the Japan
earthquake that occurred on 11 March 2011 (together, the "NZ and
Japan Exposures").
The Distribution will be made to Ordinary Shareholders on its
register of members on 10 August 2012 (the "Record Date") pro rata
to the number of Ordinary Shares held on the Record Date, as soon
as practicable following receipt of any proceeds from the Master
Fund.
The payment of any Distribution will be conditional upon the
Company receiving the proceeds from the Master Fund and the
Directors determining that the Company satisfies certain statutory
solvency tests under Bermuda law at the time of payment. The
Distribution may comprise one or more separate payments.
In light of the current loss reserve provision, Ordinary
Shareholders should note that it is not expected that any
Distribution will be made. In any event, no further payments will
be received in respect of the underlying reinsurance contracts
after 11 March 2014 and therefore no Distribution will be made
after that date.
Background to Distribution
As announced on 11 July 2012, the Master Fund SAC's Board of
Directors (the "SAC Board") has resolved to include a 100% loss
reserve provision in respect of the NZ and Japan Exposures in the
Net Asset Value calculation as at 30 June 2012, which, in turn, has
been reflected in the Company's Net Asset Value.
As such, it is no longer anticipated that the Master Fund (and,
in turn, the Company) will receive any proceeds in respect of the
reinsurance contracts linked to the NZ and Japan Exposures. The SAC
Board therefore wishes to close the outstanding side pocket
attributable to the NZ and Japan Exposures (the "Closing").
However, notwithstanding the current loss reserve provision, given
the possibility that some value will in future be due to the
participating shareholders, the SAC Board believes that it is
equitable to effect the Closing in a manner that also preserves
each such shareholder's potential entitlement to future receipts.
The SAC Board has therefore declared a conditional in specie
distribution to participating shareholders, including the Company,
of any proceeds it receives in respect of the reinsurance contracts
linked to the NZ and Japan Exposures.
As at the date of this announcement, the Company holds
279,399.7867 shares in the Master Fund (excluding SP Shares) and
14,308.4121 SP Shares. The unaudited value of the current portfolio
of the Company at 30 June 2012 is US$ 356,966,811 attributable to
its holding of shares in the Master Fund.
-Ends-
For further information, please contact:
Jason Bibb, Director
CATCo Investment Management Ltd
Telephone: +1 441 531 2227
Email: jason.bibb@catcoim.com
David Benda / Hugh Jonathan
Numis Securities Limited
Telephone: +44 (0)20 7260 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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