‘R&Q Insurance finalizes lock-up agreement’

R&Q Insurance Holdings has secured a lock-up agreement with several parties, paving the way for the restructuring of certain debts within the company. The agreement allows the parties to consent to the sale as needed and commits them not to pursue any enforcement actions relating to R&Q’s financial obligations until the restructuring and sale are finalized.

The company has also received regulatory approvals from various authorities, including the Malta Financial Services Authority, the Arizona Department of Insurance, the Florida Office of Insurance Regulation, and the European Commission. While awaiting remaining approvals, the estimated net cash proceeds from the sale have been adjusted to fall between million and 0 million, significantly lower than the initial projections due to unforeseen costs.

Upon closing the sale to Onex Corporation’s Onex Partners, the funds will be used to lower R&Q’s leverage while maintaining operational liquidity. The company is actively working towards closing the sale in the second quarter of 2024 and is exploring options to realize value from its legacy insurance business through ongoing trading.

R&Q believes that the lock-up agreement provides a stable platform for implementing the restructuring, and it will continue to engage with its lending banks and other financing providers to finalize the necessary documentation. Share your thoughts on this development in the comments below.