R&Q Insurance Holdings Ltd. (AIM:RQIH) said it is exploring its options, including a provisional liquidation, as it confirms ongoing talks with the potential acquirer of its Accredited program business. The group said that in recent weeks it has progressed in discussions with investor Onex Corporation (TSX:ONEX) and other stakeholders to complete the sale and is looking into a new proposal by the potential buyer, Onex Corp. R&Q said Onex provided an alternative transaction structure to that of the original sale in the event that the closing conditions to the original sale could not be satisfied, R&Q said in a statement.

"R&Q and Onex have continued to discuss implementing the sale on its original terms," it said. R&Q said its board is evaluating all options, including alternative transactions such as Onex's most recent proposal, and potential sources of liquidity as it works to complete the original sale. "Shareholders should note that the implementation of the alternative proposal would involve the parent company, R&Q Insurance Holdings Ltd., filing for a provisional liquidation in Bermuda and then completing the sale of Accredited to Onex through that process," R&Q said.

"The provisional liquidators would then look to realize value from the group's remaining assets." R&Q said its "directors believe that in such circumstances there would be very little, if any, chance of any value accruing to the company's shareholders." As stated in a December circular to shareholders, R&Q said if the sale does not proceed on its original terms and the available net cash proceeds are not available to facilitate a financial de-leveraging of the company, it will not be able to repay its debt facilities as they become due and it would be unable to continue as a going concern. If it enters provisional liquidation, R&Q said it would request that trading in its ordinary shares on London's AIM be suspended immediately.