Scottish Re Group Ltd. says its shareholders have approved a $600 million financing deal that will give the financiers a controlling stake in the company.
The shareholders voted at a special meeting in Bermuda to approve a set of resolutions needed to implement the deal, which was negotiated with units of Massachusetts Mutual Life Insurance Company, Springfield, Mass., and a group of affiliates of Cerberus Capital Management, L.P., New York.
Scottish Re, Hamilton, Bermuda, a life reinsurer, now hopes to complete the deal by mid-May, the company says.
Some institutional shareholders and other investors have complained that the deal is unfair to existing shareholders. Scottish Re says the alternative would be a bankruptcy filing that would be even worse for current shareholders.
“We are very pleased that our shareholders have approved the transaction and, on behalf of the board of directors, we thank them for their support during this difficult period,” Scottish Re Chief Executive Paul Goldean says in a statement.