New Stream Capital has reached agreement with its Bermuda investor classes that would provide for an orderly wind-down of New Stream Secured Capital, one of the funds for which it is a general partner.
As a part of the agreement, New Stream Capital structured the sale of the fund’s life insurance settlement and premium finance loan portfolio for approximately USD127.5m plus bridge financing.
Currently, New Stream Capital is meeting with its Cayman and US investors to share the details of the agreement reached with the Bermuda class investors. Once formal consent is obtained from the Cayman and US investors, New Stream Capital and certain other affiliates anticipate filing voluntary petitions under Chapter 11 of the US Bankruptcy Code.
In April 2009, New Stream Capital had presented to its investors a restructuring plan calling for an orderly wind-down of the fund outside of the Chapter 11 process. The April 2009 plan met approval by a majority of all classes of investors and would have provided for a fair distribution of proceeds to all investors. However, as a result of an unprecedented Bermuda Court ruling in April 2010, the April 2009 plan was fatally impacted, forcing New Stream to pursue the above course of action in the US.
In connection with these efforts, New Stream Capital has appointed an external chief restructuring officer, Michael Buenzow, a senior managing director at FTI Consulting. Buenzow has played an active role in achieving the agreement with Bermuda investors, and in reaching out to Cayman and US investors.
The current New Stream Capital management team continues to manage the day-to-day operations of the funds.
New Stream Capital is a private investment manager focused on providing non-traded private debt to the insurance, real estate and commercial finance sectors. It was founded in 2002 and is headquartered in Connecticut.
