Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

Genworth Financial Inc Cl A / Equity Bottom-Up

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Deal Update: Genworth Financial (GNW.US) [Genworth] announced that it and merger partner, China Oceanwide (715.HK), have entered into an extension of the merger deadline for the deal from March 31 to June 30 - the 14th waiver. There now appears to be some uncertainty in the disclosure that the required loan extension had not yet been secured by China Oceanwide is a bit disconcerting after all of this time and especially during the current environment;</li>
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Virginia Approval: In addition, Genworth also announced that the Commonwealth of Virginia’s insurance regulator had re-approved the merger - a requirement by the state that arose after Genworth infused USD 100 mn into Genworth Life Insurance Company of New York (GLICNY); and</li>
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Material Adverse Condition?: Mortgage firms are bracing for a wave of missed payments as many mortgage holders have lost their jobs. Genworth mortgage insurance in the US essentially guarantees mortgage payments for those mortgagees who cannot come up with a 20% downpayment. If homeowners miss payments, Genworth is contractually obligated to continue forwarding on monies to the mortgage owners. As such, Genworth (and its Canadian and Australian subsidiaries) will have to come up of billions of USD on short notice to cover their financial obligations without access to Federal Reserve emergency lending facilities. China Oceanwide may finally walk away from this deal once and for all by invoking the material adverse condition clause.   </li>
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Deal Update: Genworth Financial (GNW.US) [Genworth] announced that it and merger partner, China Oceanwide (715.HK), have entered into an extension of the merger deadline for the deal from March 31 to June 30 - the 14th waiver. There now appears to be some uncertainty in the disclosure that the required loan extension had not yet been secured by China Oceanwide is a bit disconcerting after all of this time and especially during the current environment;

Virginia Approval: In addition, Genworth also announced that the Commonwealth of Virginia’s insurance regulator had re-approved the merger - a requirement by the state that arose after Genworth infused USD 100 mn into Genworth Life Insurance Company of New York (GLICNY); and

Material Adverse Condition?: Mortgage firms are bracing for a wave of missed payments as many mortgage holders have lost their jobs. Genworth mortgage insurance in the US essentially guarantees mortgage payments for those mortgagees who cannot come up with a 20% downpayment. If homeowners miss payments, Genworth is contractually obligated to continue forwarding on monies to the mortgage owners. As such, Genworth (and its Canadian and Australian subsidiaries) will have to come up of billions of USD on short notice to cover their financial obligations without access to Federal Reserve emergency lending facilities. China Oceanwide may finally walk away from this deal once and for all by invoking the material adverse condition clause.   


Genworth Financial – MAC Clause Could Be Invoked

United States

Impac Mortgage Holdings, Inc. operates as a independent residential mortgage lender. The Company originates, sells and services residential mortgage loans within the United States.

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Impac Mortgage Holdings (IMH US)

Genworth Financial – MAC Clause Could Be Invoked

Deal Update: Genworth Financial (GNW.US) [Genworth] announced that it and merger partner, China Oceanwide (715.HK), have entered into an...

Thomas J. Monaco

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