Troubled Bermuda insurer Quanta Capital Holdings Ltd. yesterday said it had entered into a new credit facility which will be used to support the issuance of letters of credit securing its obligations to pay claims under its remaining reinsurance contracts and other obligations.

Quanta, which is running off its business, said the letters of credit will, over time, replace letters of credit previously issued under the Company's credit facility with JPMorgan Chase Bank, NA., after which time this facility will be terminated.

The credit facility was negotiated with with ING Bank N.V., London Branch, as mandated lead arranger, and a syndicate of lenders.

Quanta has also amended the terms of its JPMorgan Chase facility to permanently waive the default under that facility due to Quanta's ratings downgrade earlier this year.