Towergate creditors issue support

UK-based Towergate has received a welcome boost from its creditors after a number banded together to make a supportive statement following its downgrade.

Rating agencies Fitch and Moody's have both downgraded Towergate and placed the rating on negative watch.

A group of the company’s larger senior secured creditors, commenting through their advisors, said: “We are fully supportive of the company’s business and we are engaged in active discussions with the company’s management to help reach a solution.”

A majority of the company’s senior unsecured creditors, commenting through their advisors, added:  “We are fully supportive of Towergate.  We welcome the constructive dialogue that we are having with the company’s management to assist the business in reaching a solution.  We consider Towergate to be an excellent business with strong market franchises, that deserves long term support.”

Towergate Insurance recently announced that it was for sale and had appointed Evercore and Rothschild as joint advisers to support the evaluation of proposals the group has received.

Last week, Arthur J Gallagher (AJG) sent a private memo to its staff telling them to avoid placing business with Towergate Underwriting.