R&Q Re (Bermuda) Ltd. Court-Sanctioned Scheme of Arrangement

Hamilton, Bermuda - The Supreme Court of Bermuda has sanctioned a Scheme of Arrangement in relation to R&Q Re (Bermuda) Ltd. This innovative Scheme of Arrangement, the first of its kind in Bermuda, is designed to protect creditors from the disruption, delays and significant costs associated with an insolvency process.

The Scheme of Arrangement, under sections 99 and 100 of The Companies Act 1981, involves proposing a restructuring arrangement to the company’s creditors. If the requisite statutory majority of creditors votes in favour of the Scheme of Arrangement and the Court sanctions it, the Scheme of Arrangement becomes binding on the creditors, regardless of whether they voted. Creditors voted unanimously in support of the Scheme of Arrangement on 27 January 2025, and the Supreme Court of Bermuda sanctioned it on 31 January 2025. 

Parri Spector, Director of R&Q Re (Bermuda) Ltd. said: “The terms of this Scheme of Arrangement create a structure that provides for a solvent resolution that is binding on creditors of the company without the need for an insolvency process. The company is grateful for the support it received from the Bermuda Monetary Authority and for the expert advice and guidance provided by PwC and Conyers.” 

Dan Schwarzmann, who was appointed Scheme Supervisor, and PwC partner, commented: “Schemes of Arrangement are flexible tools that can add value in many ways. I am delighted to see it being used in the Bermuda market in this manner and am grateful to the BMA for their support from when the idea was taken to them and then throughout the process. This innovative Scheme of Arrangement has provided a solution to enable the company to avoid insolvency and the inevitable associated disruption and costs, resulting in tangible value for creditors.”

Arthur Wightman, Territory Leader, PwC Bermuda, said: “This innovative solution reflects our approach to restructuring, and reinforces Bermuda’s reputation as a leader in driving innovation through high-quality and thoughtful regulation. Our objective is to preserve or create value for organisations. We will always explore a range of options to achieve recovery and stability wherever possible. As we continue to support businesses facing crises, our specialists help identify problems, gain cooperation, develop innovative solutions, and implement them with precision.”

Christian Luthi, Chairman of Conyers, who acted for the company, said: “This particular scheme is the first of its kind in Bermuda and can serve as a useful blueprint for similar situations in the future. It demonstrates this jurisdiction’s commitment to flexible, cost-effective solutions that protect creditors and ensure the stability of Bermuda’s (re)insurance market.”

For further information, please contact the Scheme Supervisors. 

Media Contact:

Elanor Daniel | elanor.daniel@pwc.com