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syndicates, “despite the fact that [Trenwick America] was still neither a party to nor a

beneficiary of that letter of credit.”39

On April 1, 2003, Trenwick America allegedly announced that it could not file its

10-K in a timely fashion, because “management’s time and attention during the past

several months has been principally devoted to issues arising as a result of the significant

deterioration in the financial condition of Trenwick Group Limited (“Trenwick”), the

Company’s parent, including efforts to restructure Trenwick’s outstanding

indebtedness.”40

Eventually, the complaint alleges, Trenwick America failed because of the

liabilities it assumed in 2000 at the end of the LaSalle merger and the corporate

reorganization. The complaint is not more specific than that. I take it that means that

because Trenwick could not service the $490 million credit facility itself, the lenders

under that facility were entitled to look to the assets of Trenwick America to make good

on that obligation, and that Trenwick America could not do that and service the Assumed

Notes. Relatedly, I infer that the insurance operations that Trenwick acquired from

Chartwell turned out to be more problematic than profitable, because Chartwell had to

pay out more in claims than was estimated and was unable to overcome that through

growth in profitable new sales.

39 40 at ¶ 92. at ¶ 93 (Trenwick America Notification of Inability to Timely File Form 10-K filed Apr. 1, 2003).

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