Reuters: Regulatory News: Old Republic plays down concerns of liquidity crisis

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Old Republic plays down concerns of liquidity crisis Jun 26th 2012, 16:37 June 26 | Tue Jun 26, 2012 12:37pm EDT June 26 (Reuters) - Old Republic International said it was unlikely regulators would seize its money-losing mortgage insurance business and played down the possibility of a liquidity crisis, after the company abandoned plans to spin off the unit. "We're comfortable, based on our discussions, that receivership is not in play," Chief Executive Aldo Zucaro said on a conference call to discuss the canceled spin-off. Zucaro said the company had evaluated the possibility of receivership, which would lead to an acceleration of its debt repayments, and was confident it would be able to either refinance its debt or amend the terms. Old Republic on Friday canceled the spinoff and reversed the partial leveraged buyout of the unit Republic Financial Indemnity Group (RFIG) to a group led by its President Christopher Nard and other individual investors, following objections from certain stakeholders. The spinoff and sale of the business, which includes the money-losing consumer credit indemnity and mortgage guaranty insurance units, would have established RFIG as a separate publicly traded company. The company's shares, which had fallen on news of the canceled spinoff, were up 5 percent in mid-day trade on the New York Stock Exchange. Link this Share this Digg this Email Reprints

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