GoshawK, the insurer brought down to earth by huge losses due in part to the collapse of The Accident Group, has restructured its bank debt.
GoshawK was heading for trouble when it breached limits last year on £20m and $65m of debt lent by banks including Barclay's. It was forced to pull out of Lloyd's and concentrate instead on its Bermuda-based operation, GoshawK Re.
It has now signed up to agreements covering how it will repay a $65m medium term loan facility and fund a £20m letter of credit facility, both of which were in breach.
The company said in a statement it had made a first repayment of principal and interest on the term facility, bringing the balance owed down to $52m. Four further repayments of principal must be made in December 2004, 2005, 2006 and 2007.
The letter of credit facility is part of GoshawK's funds at Lloyd's and as such will have to be used to meet losses run up by its failed Syndicate 102.