Bermuda-based James River Group has initiated a lawsuit towards Fleming Intermediate Holdings, a portfolio entity of Altamont Capital Companions, looking for to compel Fleming to stick to circumstances of a inventory buy settlement (SPA) in regards to the acquisition of JRG Reinsurance Firm Ltd. (JRG Re).

The authorized motion, filed within the Industrial Division of the Supreme Court docket of New York County, facilities on Fleming’s alleged failure to finish the acquisition of JRG Re, a deal poised for closure upon securing all requisite regulatory nods.

James River’s authorized submitting recounts that Fleming, on the eve of the anticipated closing, withdrew from the settlement. The corporate is accused of not taking part within the remaining closing name and looking for substantial alterations to the phrases of the transaction on the final minute.

James River asserts that it has fulfilled all contractual obligations obligatory for the deal’s conclusion, first publicized on November 8, 2023. The insurer now seeks the court docket’s pressing intervention to implement the SPA, thereby obligating Fleming to proceed with the acquisition as initially agreed.

The group’s earlier introduced sale of JRG Re has resulted in a number of bother for James River. In December, a regulation agency initiated investigations towards the holding agency over what it alleges to be an absence of efficient controls over reinsurance.

Earlier this 12 months, James River and its subsidiaries – together with JRG Re – have been hit by downgraded rankings from AM Finest following what was perceived to be materials weak point in its inner management over monetary reporting and the plans to unload JRG Re. This downgrade was adopted by a internet loss realized in its This fall 2023 monetary outcomes, which revealed a notable $80.4 million loss associated to the sale.

In gentle of this new swimsuit, Frank D’Orazio, CEO of James River, acknowledged the corporate’s dedication to defending its pursuits and people of its shareholders vigorously.

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