The second largest U.S. life reinsurer says it has taken an important step toward lining up more financial resources.

Scottish Re Group Ltd., Hamilton, Bermuda, reports it is close to completing a reinsurance transaction with an “independent third party” that will provide access to up to $120 million in cash and other liquid assets.

The deal, which is “subject to finalization of customary treaty terms,” is one part of Scottish Re’s plans to raise between $150 million to $250 million to reduce near-term liquidity pressure, Scottish Re President Paul Goldean says in a statement.

Scottish Re announced earlier this year that it had lost money because some reinsurance agreements had performed worse than executives had expected.

The company still has large amounts of assets, but restrictions on its ability to move assets from one unit to another had raised questions about the company’s ability to meet obligations to noteholders over the next few quarters.

Securities analysts in the New York office of Fox-Pitt, Kelton, an investment bank that is partly owned by Swiss Reinsurance Company, Zurich, have put out a comment welcoming the liquidity announcement.

The way Goldean worded his remarks about the deal “suggests to us that at least one additional transaction remains in the works,” the analysts write.

The silence of the debt rating agencies about the latest Scottish Re move and other recent Scottish Re moves to increase financial flexibility also “leads us to believe that at least one additional liquidity-related transaction remains in the works and the agencies are simply awaiting its announcement before making any formal commentary,” the analysts write.