Advisers representing secured and unsecured investors say they are helping the company find a solution
Representatives of Towergate’s secured and unsecured bondholders have issued messages of support for the troubled broking group, according to a statement issued by Towergate’s PR company.
The advisers also said bondholders were working with Towergate on solutions to its current situation.
A spokesman at Towergate’s PR firm FTI Consulting, which issued the statement, declined to name the advisers acting for the two groups.
The news comes as the price of Towergate’s unsecured bonds are trading at an all-time low.
Cash shortage
Towergate hit difficulties last week when it revealed that it may face a cash shortage when its debt interest comes up for payment next February.
The news has prompted broker Gallagher to stop placing new business with Towergate’s MGA, Towergate Underwriting.
Advisers for a group of the company’s larger senior secured bond investors said: “We are fully supportive of the company’s business and we are engaged in active discussions with the company’s management to help reach a solution.”
Advisers for “a majority” of the company’s senior unsecured bond investors said: “We are fully supportive of Towergate. We welcome the constructive dialogue that we are having with the company’s management to assist the business in reaching a solution. We consider Towergate to be an excellent business with strong market franchises, that deserves long term support.”
According to news reports, Towergate’s unsecured bondholders are being advised by investment bank Houlihan Lokey. Reports say secured bondholders are being advised by law firm Sullivan & Cromwell and investment bank Moelis & Company.
All-time low
Towergate’s unsecured bonds were trading at $30 yesterday and Wednesday – their lowest level since trading began and well below their face value of $100.
Towergate’s fixed interest rate secured bonds were trading at $87 yesterday, up slightly on Wednesday’s $86.5.
The broker’s unecured floating interest rate bonds were trading at $85, slightly up on Wednesday’s $84.5
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
No comments yet