NEW YORK (Bloomberg) ? Scottish Re Group Ltd. shareholders should vote for a $600-million buy-out bid when they meet in Hamilton on February 23.

That is the view of two investor advisory firms who believe the bid by Cerberus Capital Management LP and MassMutual Financial Group to buy a majority stake in the Bermuda reinsurer would be a positive development.

?We believe the proposal is in the interests of shareholders,? Glass, Lewis & Co. said in a February 9 report. ?The $600 million equity investment and associated $600 million in debt financing are critical to shore up the company?s finances and head of a potential default and/or bankruptcy filing.?

Scottish Re put itself up for sale in July after posting a surprise second-quarter operating loss because of a tax expense and reported Scott Willkomm had quit as chief executive officer. Its debt ratings were subsequently cut to junk.

MassMutual of Springfield, Massachusetts, and New York-based Cerberus plan to purchase one million new convertible preferred shares at $4 a piece that can be converted into a 69 percent stake in Scottish Re at any time. A conversion would create 150 million new common shares.

?There is no guarantee that the company will find an equal or superior offer from another party,? Institutional Shareholder Services said, according to a Scottish Re statement.

The deal has been approved by Scottish Re?s board. Shareholders will meet and vote on the deal at the Fairmont Hamilton Princess a week on Friday.