Tower Group A/S i likvidation
Company release no. 40 / 2011 – Plan to spin-off solvent assets

Tower Group A/S 

22.12.2011 21:50

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On 28 November 2011, the Board released Company realease no 39, in which the
Board informed that Tower Group A/S had been unable to secure funding from its
majority shareholder for on-going operations and restructuring, making it thus
impossible to complete the contemplated rights issue.  Furthermore, this
brought into question the viability of the Company as a going concern. 

From this date, the Board has considered various possibilities including
immediate insolvency, but following positive signals from key stakeholders has
decided to create a plan to spin-out some or all of the solvent assets into a
new subsidiary and sell this subsidiary by way of an open market sales process
to the highest bidder. The proceeds from such a sale would then be used for an
orderly liquidation of Tower Group A/S.  Despite the fact that such a sale is
not expected to recover any value for the shareholders, which is the same
outcome as in the case of an immediate insolvency filing, the Board believes
this option is worth pursuing as it preserves some value for many of the other
stakeholders. The Board expects such a spin-out and sale to take place in
February or early March, 2012. 

Should the spin-out option fail, it is unlikely the Board will have any other
option than to immediately file for insolvency. 


Best regards
Tower Group A/S


Martin Coté
CEO

Questions regarding this release can be directed to Martin Coté, CEO, on tel.:
+420 725 716 755.
News Source: NASDAQ OMX



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Language:     English
Company:      Tower Group A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0011188035
WKN:          
 
End of Announcement                             DGAP News-Service
 
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