Dodgers' owner Mark Walter to buy $6.5 billion in assets from troubled insurer
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Set us as preferred Mark Walter’s holding company plans to buy up to $6.5 billion in assets from a troubled life insurer he controls that is at the center of a controversy over his sale of the Lakers.Delaware Life Insurance Co.said in a regulatory filing Tuesday that TWG Global will buy that much of affiliated assets that were found on its books amid a federal investigation.Affiliated, or related-party, assets, while legal, are between businesses that have ties and pose potential conflicts of interest; they require disclosure and typically extra regulatory scrutiny.Delaware Life stated in a prior filing that after it received a grand jury subpoena in February, an internal investigation uncovered more than $16 billion of its loans that needed to be reclassified as affiliated or related-party.
Business With the Department of Justice, the SEC and state insurance regulators probing Mark Walter’s businesses, the Dodgers owner has a lot on the line.The restatement brought such loans to 40% of its invested assets as of Dec.31, according to Fitch Ratings.
The credit rating outfit said that is the most of any North American life insurers it reviews.Company executives told Fitch they were unaware they were making related-party loans.The loans were made to entities associated with Walter or TWG, and federal authorities are investigating whether they were passed through third parties, Bloomberg has reported, citing unnamed sources familiar with the investigation.Delaware Life started a remediation plan months ago to restructure some of the loans, including through the TWG purchases, according to S&P Global.
It hopes to complete the plan by the end of the year.Clear Spring Life and Annuity Co., another Delaware insurer Walter controls through TWG, said that it cut related transactions by $90 million, in a separate filing Tuesd...