Hildene Capital Management LLC is the winning bidder for two bankrupt Scottish Re Group Ltd. subsidiaries, besting an earlier offer by an investment fund led by a former Goldman Sachs Group Inc. executive, WSJ Pro Bankruptcy reported. The Stamford, Conn.-based hedge fund plans to pay a total of $34 million, including $12.5 million to recapitalize Scottish Holdings Inc. and an affiliate after they leave bankruptcy, according to filing Friday in U.S. Bankruptcy Court in Wilmington, Del. Hildene had owned trust preferred securities in Scottish Holdings when it sought protection from creditors in January, and was one of three members of the unsecured creditors committee, court filings show. The Scottish business had entered bankruptcy with a deal in hand to sell itself to HSCM Bermuda Fund Ltd., subject to better bids. The investment fund of Hudson Structured Capital Management Ltd. originally said it would pay a total of about $25 million, of which $12.5 million would be to recapitalize the companies after they emerge from bankruptcy. After the auction in New York last Wednesday, Hudson was named the backup bidder, with a total offer that had risen to $32 million, including the $12.5 million to recapitalize the companies.
