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Struggling Reinsurer Schedules Vote

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Scottish Re Group Ltd. shareholders will get a chance to weigh in on the company’s proposed financing plan Feb. 23 in Hamilton, Bermuda.

Scottish Re, Hamilton, has announced an extraordinary shareholder meeting for that day in a proxy mailed today.

Scottish Re shareholders will vote on whether to accept an agreement that calls for affiliates of Massachusetts Mutual Life Insurance Company, Springfield, Mass., and Cerberus Capital Management L.P., New York, to pay a total of $600 million in exchange for 69% of Scottish Re’s shareholder voting power.

Some shareholders have been urging Scottish Re to look for a better deal.

Scottish Re President Paul Goldean is defending the deal in a letter accompanying the proxy statement.

“An exhaustive auction process was undertaken,” Goldean writes. “The alternatives of run-off and bankruptcy likely would result in significantly less value to shareholders.”

Scottish Re notes in the proxy statement that 7 of the company’s top officers could collect a total of $14.5 million in change-in-control payments if they are fired after the proposed deal is completed.

A copy of the proxy statement is on the Web at Document Link