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Towergate Financial Chapter 15 Petition Filed

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According to the U.S. Bankruptcy Court docket, Kent, England-based Towergate Financial filed for Chapter 15 protection in the Southern District of New York, case number 15-10509. This insurance intermediary company is represented by Robert Trust of Linklaters. Though the Debtor has no places of business in the United States, its existing indentures are governed by New York law. The Company previously filed a scheme proceeding under English law. The proposed timetable of that scheme, subject to permission by the English Court, is as follows: (i) the scheme meetings are to take place on March 24, 2015 and (ii) the scheme sanction hearings are to take place on March 27, 2015.

According to documents filed with the Court, “Towergate’s trading performance since mid-2014, coupled with the significant risk that it may have material liabilities under certain ongoing regulatory investigations into its historic business practices, has resulted in the Group facing financial difficulties, particularly in light of the Debtor’s debt service obligations….Towergate initially sought to address these constraints and the resulting potential liquidity shortfall through disposals of non-core businesses and certain other management actions….However, it has since become apparent to Towergate that further non-core disposals will be insufficient to address its liquidity issues and unsustainable leverage….The Group is considering the disposal of the Towergate Financial business, seeking to complete by the end of February 2015.”

Towergate Financial’s Chapter 15 petition indicates total assets greater than $1 billion. Read more about international bankruptcies.