Brazilian reinsurer IRB Brasil Re has again pushed back the release of its Q1 results, amid reports that the company must come up with 1 billion reais ($194 million) to settle a court dispute that arose after a drop in IRB’s share price earlier this year.
Back in May, IRB announced that it would postpone the release of its first-quarter 2020 financial results to June 18th, amid the ongoing impacts of the COVID-19 coronavirus pandemic.
But now, the re/insurer says the results will not be available until June 29th, with a conference call set for the following day.
The update follows news that a court in Sao Paulo has ordered IRB to prove that it has 1 billion reais available to reimburse shareholders facing losses from the volatility in the company’s share price, Reuters reported.
According to the publication, the decision of the court partially served a civil suit to compensate shareholders seeking compensation for losses through arbitration.
It was estimated that the total losses due to the fall in share price amount to around 4 billion reais ($763 million), although the judge denied a request for the immediate removal of the entire board of IRB.
For its part, IRB said that it intends to reverse the court’s decision, which it noted remains preliminary in nature and thus subject to reform and appeal.
It’s been an eventful year for the reinsurer, having announced in March that it had replaced its President and Chief Financial Officer amid confusion over a possible investment by Berkshire Hathaway. The announcement prompted its shares to fall 32%.
A month later saw a number of IRB Brasil Re board directors resign and focus on other position due to the pandemic.