3) as security for the debt, MICCI would grant a security
In July 1995, CIGL confirmed to MICCI that it would require payment in full of the debt on its maturity on Sept.
The special committee concluded that there were limited alternatives available to MICCI to satisfy the debt.
of Canada, MICCI had not been able to complete a sale, apart from the sale of certain assets relating to the residential mortgage insurance business to GE Capital Mortgage Corp.
The special committee concluded that, given the imminence of the maturity of the debt, the failure of MICCI to sell The Mortgage Insurance Co.
During the past two months, the special committee has conducted extensive negotiations with CIGL in order to restructure the debt and the share capital of MICCI.
If the restructuring is approved, MICCI will be able to continue as a going concern and will have the opportunity to realize value on behalf of all of its present preferred and common shareholders.
If the restructuring is not approved, MICCI will be unable to meet its debt obligation to CIGL.
In order to review all of the alternatives available to MICCI
to satisfy the debt, the board of directors has created a Special Committee consisting of those directors who are not also directors of CIGL Holdings Ltd.