Goshawk has appointed Rory Macnamara as chairman and Michael Dawson as chief executive with immediate effect and announced fund-raising plans to improve its financial position.
Goshawk said the current board are to resign from Goshawk and all its subsidiaries with immediate effect, with the exception of Richard Titley, who intends to do so shortly and Russell Brooke and Jonathan Beck who will remain on the board of its Bermudian operation Rosemont Re for a short period of time to facilitate an orderly operational handover to the new directors.
Macnamara has been working as a consultant to the board in conjunction with Michael Dawson and is planning the run-off of Rosemont Re. The company said he is in ongoing consultation with its lending banks and the Bermuda Monetary Authority to seek a satisfactory outcome for the benefit of both the banks and shareholders.
Goshawk said it is also considering the possibility of launching an equity issue to raise $15-20m. Goshawk said the issue, if completed, should improve the company's financial position and would be used to repay part of the amounts due to the banks and fund ongoing running costs.
Phoenix Asset Management, Goshawk's largest shareholder, has provided a written indication of its intention to underwrite such an equity issue if it is made.
It added that its underwriting is conditional on the board changes described above and on the grant of a waiver by the Panel on Takeovers and Mergers from the obligation that might otherwise arise to make a mandatory offer for all the shares in Goshawk not already owned by Phoenix.