Goshawk is proposing to sell its Rosemont business to Aerial Holdings for $12.5m.
The company said the amount will be payable in cash to its Rosemont Re unit on completion of the deal, but added the continuing group does not have sufficient working capital for its present requirements.
Goshawk said the proposed sale will allow it to realise value that was not otherwise achievable from the franchise.
As a result of lack of distributable reserves, Goshawk said a reconstruction of the group will need to take place before any proceeds may be returned to shareholders.
A reconstruction is expected to take several months to complete and the board may seek to, or be required to, de-list Goshawk's shares from the Stock Exchange as part of this process.
Goshawk added it could go into administration if the banks demand the immediate repayment of debts; if a proposed fundraising fails to happen, or if the proposed sale of the Rosemont business is not approved by shareholders and the banks or regulatory authorities deem this as a 'negative development'.
