Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 121

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 121
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 among representatives of Paul, Weiss, Skadden and Kramer Levin. During this period, the parties exchanged comments with respect to, among other things, the structure of the potential transaction, termination rights and related termination fees, governance of the combined company and required efforts and related parameters and/or adjustments with respect to the potential earnout consideration. During this period, Maiden and AmTrust engaged in extensive discussions regarding the Commutation, including the payment that Maiden would be required to make to AmTrust (and charges that Maiden was likely to subsequently incur) in connection with the Commutation. During that same period, Maiden, with assistance of its independent third-party actuary, as well as a third-party market reinsurance company conducted detailed claims and actuarial diligence on the AmTrust reinsurance liabilities that could potentially be retroceded to such third party. At the same time, Maiden’s independent reinsurance broker continued to engage with other reinsurance companies regarding a potential retrocession of certain of Maiden’s AmTrust reinsurance liabilities. Also, during this period, the parties began to discuss a revised transaction perimeter in which less than all the AmTrust Insurance Companies would be acquired to reduce the upfront cash needed to complete the transaction and the impact on the combined company’s liquidity.

The Maiden board held meetings on August 6 and August 7, 2024, at which Maiden management and (at the August 6 meeting) representatives of IAP and Paul, Weiss, were in attendance. Mr. Haveron updated the Maiden board as to the ongoing discussions with AmTrust and Kestrel. Mr. Haveron advised the Maiden board of the key open issues, including that discussions with third parties regarding a retrocession of the AmTrust reinsurance liabilities had not yet resulted in a viable solution but that Maiden’s independent reinsurance broker was continuing to engage in such discussions on behalf of Maiden. Maiden was also continuing to engage directly with one reinsurance company regarding a retrocession of the AmTrust reinsurance liabilities. Mr. Haveron also explained the challenges reaching an agreement with AmTrust regarding a Commutation on terms that Maiden believed were commercially reasonable for Maiden in light of Maiden’s financial circumstances at the time. Mr. Haveron explained that, in light of the upfront costs associated with acquiring all four of the AmTrust Insurance Companies and the challenges in reaching a cost-effective finality solution for the AmTrust reinsurance liabilities with AmTrust or any third-party reinsurance company, Maiden management had discussed with representatives of Kestrel and AmTrust a transaction structure that