A spokesman for Greg Lindberg issued a fiery statement Monday to correct "false and politically motivated allegations" by North Carolina Insurance Commissioner Mike Causey.
The North Carolina Insurance Department has taken over a group of companies owned by Lindberg, a wealthy political donor facing federal charges that he conspired to bribe the state insurance commissioner.
A June court order directed the department to take control of four life insurance companies, which Lindberg acquired in recent years and then operated as Global Bankers Insurance Group.
Lindberg, former N.C. Republican Party Chairman Robin Hayes and two of Lindberg's associates are accused of trying to bribe state insurance commissioner Mike Causey with $2 million in campaign contributions.
The four allegedly tried to get Causey to take actions favorable to one of Lindberg's companies -- including the removal of an insurance department employee responsible for regulating that firm.
Lindberg's statement counters the allegations against him:
- Greg Lindberg and his team at Global Growth did not "fail to live up to" the obligations of the June 27th, 2019 Memorandum of Understanding (MOU). While directors and officers of the new holding company have been identified, and the entity has been formed, there are several material steps that need to be accomplished before the transactions contemplated in the MOU can be closed. As New York City consultant Mo Megjhi, Managing Partner of M-III Partners said in court filings, "Until these steps are accomplished, it would not be prudent" to complete the proposed restructuring. Such steps include insurance lender consents, third party lender consents, and global loan amendments, among other items.
- Mr. Lindberg's group of companies is very well managed and none of their operating income is being inappropriately "diverted" for Mr. Lindberg's personal use. This year Global Growth's businesses in aggregate are forecasting close to $300 million in cash flow across all companies on approximately $1.4 billion in revenue. Total cash projected to pay senior debt service is approximately $121 million this year, for a forecasted cash pay senior debt interest coverage ratio of close to 2.5x to 1, a level comparable to BB and B corporate bond issuers in today's market.
- As Mr. Lindberg has commented: "I am acutely aware that the false accusations against me have hurt every one of the 8,500 people who work for Global Growth by hindering our access to credit markets, harming our brand, slowing down our acquisitions, and costing us tens of millions of dollars of unnecessary legal fees and other expenses. In all, the Global Growth companies have lost over $1 billion in financing transactions as a result of Mr. Causey's politically motivated attacks. Mr. Causey's actions have directly harmed the policyholders he was elected to protect."
- Contrary to Mr. Causey's politically motivated attacks, Global Growth's main non-insurance holding company, Academy Association, Inc., made $77 million in net income in 2018 on tax basis, and Global Growth's main insurance holding company, GBIG Holdings, Inc., made $62 million in net income in 2018 on a tax basis.
- There is no "cash flow crisis" at Mr. Lindberg's companies. This a false allegation manufactured by Mr. Causey to promote his false narrative about Mr. Lindberg. Global Growth's non-insurance companies have over $100 million of cash on hand and Global Growth's insurance companies have total cash and cash equivalents of over $1.4 billion.
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