Lloyd's managing agent Trenwick has until September to find a buyer, sources said.
Last month, it was revealed Trenwick was seeking a management buy-out (MBO) from its troubled US parent.
Now, a ...
Lloyd's managing agent Trenwick has until September to find a buyer, sources said.
Last month, it was revealed Trenwick was seeking a management buy-out (MBO) from its troubled US parent.
Now, according to market insiders, Trenwick UK chairman and chief executive Michael Watson has been given a September deadline by Trenwick's US parent group to finalise a buy-out.
"I understand Michael Watson has been given until September to finalise a deal," said a Lloyd's underwriter.
"If he fails, it will be the end for Trenwick's UK operation."
Watson, currently in the US, was unavailable for comment, but a Trenwick spokesman refused to deny the insurer had been set a September deadline.
"Trenwick is continuing to look for alternative sources of finance," said the spokesman.
Last month, Trenwick's US holding company was downgraded from C to D by ratings agency AM Best.
The action followed Trenwick's announcement it defaulted on $75m (£47m) senior notes due on 1 April.
Despite the downgrade, Trenwick's UK operation is understood to have performed well and, as a result, the UK management is keen to preserve the business.
Trenwick UK has confirmed it is looking for "alternative sources of finance".
But the search for a buyer has, so far, been unsuccessful.
In February of this year, Trenwick's US stock fell 18.75% after the group revealed losses of $198.1m (£125.7m) for the fourth quarter of 2002. The losses were seven times greater than for the same period in 2001. In response, the New York stock exchange (NYSE) in February warned Trenwick its share price must increase to $1 within six months or its shares will be suspended and de-listed. Trenwick's shares are currently trading at $0.11.
