DURHAM, N.C., Sept. 16, 2022 /PRNewswire/ -- A spokesperson for Greg Lindberg provided the following update regarding the exit of his North Carolina insurance companies from rehabilitation:
- Lindberg states that there is a "ready and willing" buyer for his NC insurance companies who has offered to pay "several hundred million dollars" for these companies so that they can be sold and exit rehabilitation immediately. At the time of sale, policyholders will be able to access all their benefits, Lindberg says. "The North Carolina Department of Insurance (NCDOI) has yet to respond to a Letter of Intent from a highly qualified buyer for my North Carolina insurance companies," Lindberg says. "My insurance companies successfully exiting rehabilitation utilizing our recommendations will prove that the allegations about liquidity and questions about our financial strength have been false since day one," Lindberg says.
- Lindberg also reports that he has authorized the "immediate sale" of several of Global Growth's portfolio companies that will generate well over $1 billion of proceeds that can be used to purchase affiliated assets from the North Carolina insurers as part of the rehab exit plan. "We are not waiting for the NCDOI," Lindberg says. "We are proceeding now with sale transactions that will result in the immediate rehab exit of my North Carolina insurers." Lindberg notes that the proposed 7-year rehab plan by the NCDOI is being litigated in court. "7 years is unacceptable," Lindberg says. "The way I see it, everyone wants these companies out of rehab now so policyholders can access their benefits immediately," Lindberg says.
- Lindberg also says that third party lenders are "ready and willing" to provide financing that will result in the immediate paydown of over $150 million in affiliated loans to the North Carolina insurers. "Blocking these loans directly impacts policyholders and keeps the North Carolina insurers from exiting rehabilitation," Lindberg says.
- Lindberg says that his North Carolina insurers would have reduced their percentage of affiliated assets below the new 10% North Carolina statutory limit way back in December of 2018 had the governing parties been actually interested in protecting policyholders. "In August of 2018 Global Growth was very close to closing an $600 million financing that would have paid down affiliated assets below 10% of total assets," Lindberg says. "In fact, the lender that was providing this $600 million loan expressed to the NCDOI that the financing was looking "strong" and there were already "orders in the book." Unfortunately, this financing, along with several other financing attempts, were withdrawn or halted as a result of the investigation.
- Lindberg says that at the end of 2018, his team was in discussions with another large lender to provide up to $1 billion in financing as part of this lender's purchase of his North Carolina insurers. "In December of 2018 however, I was informed that someone from 'the government' called this lender and told them not to underwrite any loans to us," Lindberg says. "This type of behavior only serves to undermine Global Growth and none of this helps policyholders," Lindberg says.
- Despite these challenges, Lindberg says that the Global Growth companies have worked diligently to re-establish credit market access. Global Growth companies have closed over $1.2 billion of third-party financing so far this year, Lindberg reports. "Through it all, Global Growth has proven its resiliency, businesses are performing very well, and lenders are making loans to Global Growth companies," Lindberg says.
Lindberg notes that Mike Causey ran for the position of North Carolina Insurance Commissioner five times before winning by less than 1% of the vote. Lindberg says that he had supported Causey's opponent. "From my perspective, the root of this problem is politics. All my insurance companies were seeking was fair and equitable regulation," Lindberg says.
After the government accused Lindberg of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds, the United States Court of Appeals for the Fourth Circuit unanimously agreed that his conviction violated his Constitutional rights and must be vacated.
Lindberg says he will "continue to fight until every policyholder is paid out."
SOURCE Greg Lindberg
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September 16, 2022 at 07:07PM
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Greg Lindberg Sets the Record Straight on Rehab Exit of His North Carolina Insurers - PR Newswire
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