James River has secured a legal victory over specialist run-off reinsurer Fleming in the ongoing JRG Re acquisition saga, announcing that the New York County Supreme Court, Commercial Division, has issued a preliminary injunction in its favor.
This legal directive mandates Fleming Intermediate Holdings, a portfolio entity under the aegis of Altamont Capital Partners, to finalize its purchase JRG Re no later than April 16, 2024.
The court’s decision came as a response to James River’s appeal for a preliminary injunction to ensure the completion of the sale of JRG Re, as outlined in the Stock Purchase Agreement jointly agreed upon and signed by both parties on November 8, 2023.
“We are pleased that the Court has granted James River’s request for a preliminary injunction, compelling Fleming to complete the acquisition of JRG Re in accordance with the Stock Purchase Agreement that the parties negotiated together and executed on November 8, 2023. We look forward to finalizing the transaction,” James River’s chief executive officer, Frank D’Orazio, said.
Fleming has not responded to the court decision.
Earlier this month, Fleming mounted its own legal defense against the injunction, stating that the dispute was not about reconsideration of the purchase but stemmed from what Fleming described as deceptive practices by James River after the initial agreement.
“This is not a case of buyer’s remorse. It is a bait and switch,” the company said in its filings. “Fleming was excited to buy JRG Reinsurance and remains willing to do so.”
Fleming also indicated that it remained willing to finalize its purchase of JRG Re, given that James River corrects the identified breaches in the contract, suggesting adjustments to reserves and liquidity to facilitate the transaction’s completion.
“While Fleming will continue to defend itself against this meritless lawsuit, we remain willing to acquire JRG Reinsurance if James River cures its breaches of the agreement,” Fleming CEO Eric Haller previously said.
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