As a part of the agreement, NSC structured the sale of NSSC’s life insurance settlement and premium finance loan portfolio for approximately $127.5m plus bridge financing.
Currently, NSC is meeting with its Cayman and US investors to share the details of the agreement reached with the Bermuda class investors.
Once formal consent is obtained from the Cayman and US investors, NSC and certain other affiliates anticipate filing voluntary petitions under Chapter 11 of the US Bankruptcy Code.
Prior to this agreement, NSC had, in April 2009, presented to its investors a restructuring plan calling for an orderly wind-down of the NSSC fund outside of the Chapter 11 process.
The April 2009 plan met approval by a majority of all classes of investors. However, as a result of a Bermuda Court ruling in April 2010, the April 2009 plan was fatally impacted, forcing New Stream to pursue the above course of action in the US.
In connection with these efforts, New Stream Capital has appointed an external chief restructuring officer (CRO), Michael Buenzow, a senior managing director at FTI Consulting.
The current NSC management team will continue to manage the day-to-day operations of the Funds.
