Bermuda-Based Reinsurer Must Post $15 Million Bond, N.Y. Federal Bankruptcy Judge Rules

NEW YORK — A New York federal judge has ruled that a Bermuda-based specialty reinsurer must post a $15 million bond before its motion to compel arbitration of a coverage action involving MF Global Holdings Ltd. can be considered.

On June 12, Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York held that Allied World’s filings in the instant case constitute “pleadings” under the bond statute, and that the statute is not preempted by the New York Convention.

Allied World, a Bermuda-based specialty reinsurance company, issued an errors and omissions policy to MF Global …