Towergate announces restructuring, injection of capital

Towergate Insurance has announced that it has entered into a binding agreement with its senior secured creditors to implement a financial restructuring and recapitalisation of the Group.

Under the terms of the agreement, Towergate will emerge with a substantially deleveraged capital structure, together with additional liquidity resources with which to deliver its strategic plan.

The agreement has received the unanimous approval of the Restructuring Committee of the Board and in excess of 70 percent in aggregate of the Group’s senior secured creditors.

The Company is aware that discussions between senior secured and senior unsecured creditors are ongoing to determine the terms on which the senior unsecured creditors may participate in the restructuring. The Company will make further announcements as appropriate.

The Company also announced the Group’s preliminary consolidated results for the year ended 31 December 2014.

Commenting on the restructuring, chairman Alastair Lyons said: “This ends a long period of uncertainty for Towergate and lays the foundations for a strong future. With a very substantial reduction in our existing debt burden and GBP75 million of new investment we have what we need to be able to realise our strategic ambitions.”