DURHAM, N.C., Sept. 14, 2022 — A spokesperson for Greg Lindberg provided the following update regarding the exit of his North Carolina insurance companies from rehabilitation:
- Lindberg states that there is a “ready and willing” buyer for his NC insurance companies who has offered to pay “several hundred million dollars” for these companies so that they can be sold and exit rehabilitation immediately. At the time of sale, policyholders will be able to access all their benefits, Lindberg says. “Mike Causey and the North Carolina Department of Insurance (NCDOI) has refused to even respond to a Letter of Intent from a highly qualified buyer for my North Carolina insurance companies,” Lindberg says. “Mike Causey does not want my insurance companies to exit rehabilitation because it proves that he has been making false allegations about their liquidity and financial strength since day one,” Lindberg says.
- Lindberg also says that third party lenders are “ready and willing” to provide financing that will result in the immediate paydown of over $150 million in affiliated loans to the North Carolina insurers. “Mike Causey has blocked these loans because he does not want the North Carolina insurers to exit rehab,” Lindberg says.
- Lindberg says that at the end of 2018 his team was in discussions with another large lender to provide up to $1 billion in financing as part of this lender’s purchase of his North Carolina insurers. “In December of 2018 however, someone from ‘the government’ called this lender and told them not to underwrite any loans to us,” Lindberg says. “Mike Causey’s agenda since day one has been to make false accusations about me and my companies to destroy our access to credit markets. None of this helps policyholders,” Lindberg says.
- Despite these challenges, Lindberg says that the Global Growth companies have worked diligently to re-establish credit market access. Global Growth companies have closed over $1.2 billion of third-party financing so far this year, Lindberg reports. “Despite Mike Causey’s best efforts to shut down Global Growth’s access to credit markets, the Global Growth businesses are performing very well and lenders are making loans to Global Growth companies,” Lindberg says.
“The root of this problem is politics,” Lindberg says. Lindberg notes that Mike Causey ran for the position of North Carolina Insurance Commissioner five times before winning by less than 1% of the vote. Lindberg says that he had supported Causey’s opponent. Yet, immediately upon taking office, Lindberg’s insurance companies stopped receiving fair and equitable regulation, Lindberg says.
After the government accused Lindberg of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds, the United States Court of Appeals for the Fourth Circuit unanimously agreed that his conviction violated his Constitutional rights and must be vacated.
Lindberg says he will “continue to fight until every policyholder is paid out.”