As usual pretty good coverage on Money Stuff
SREN was rescued as well (by Berkshire Hathaway…).
Reinsurers are different from insurers.
- they haven’t retail clients
- some of their clients are bigger (including resources, knowledge, …) than themselves
- they hold massive reserves for long-term policies (they can span over 30 years!)
- they need very good ratings to survive (good clients of any size say “good bye” quickly if there is any doubt).
Why wouldn’t the court not approve it ? Does the court has others goals than protects the creditors ? I don’t think so. It makes perfect sense to me.
I could sound like security fraud (since the shares should eventually be wiped out). But I guess if they spell that out in the filing, they’re fine. Like “Hey we’re raising 1B, in exchange for buying those shares you’ll get nothing, thanks”.
They pretty much said in their Chapter 11 filling that they were unable to secure financing from traditional channels. Bankruptcy crowdfunding will be the first ever of this kind. Unless SEC disallows it.
BME: MEL (Melia Hotels International)
AMS: URW (Unibail-Rodamco-Westfield)
have joined my recovery portoflio as of today morning.