Bermudian-based R&Q Insurance Holdings Ltd is to file for provisional liquidation.

The news comes just days after R&Q provided an update on the proposed sale of 100 per cent of R&Q’s equity interest in Randall & Quilter America Holding Inc, the holding company of the company's programme management business Accredited, to funds advised by Onex Corporation.

The announcement explained that Onex had provided R&Q with a proposed alternative transaction structure to that of the original sale that could be implemented in the event that the closing conditions to the original sale were not able to be satisfied.

R&Q said that its board was exploring and evaluating all options that may be available to the company while continuing discussions on implementing the sale on its original terms.

The company said today: “Following the board’s exploration and evaluation and taking all other relevant factors into consideration, including the cash resources currently available to the company, the board has concluded that the alternative proposal represents the best option to secure value at this time.

“The implementation of the alternative proposal will involve the company filing for a provisional liquidation in Bermuda and the board expects the sale of Accredited to Onex to then be implemented through that process.

“The provisional liquidators would then look to realise value from the company’s remaining assets, at the end of which the remaining company would be wound up.

“The directors believe that, in those circumstances, there will be very little, if any, chance of any value accruing to the company’s shareholders.

“R&Q will now request that trading in the company’s ordinary shares on AIM (Alternative Investment Market) be suspended with immediate effect and will be filing for provisional liquidation in Bermuda, in due course.”

R&Q added: “Notwithstanding any suspension of trading in the company's ordinary shares, the company will continue to make notifications as and when there are matters requiring disclosure in accordance with the company's obligations under the AIM Rules for Companies and/or the UK Market Abuse Regulation.

“Further announcements will be made, as appropriate, in due course.”