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Subsequent Events
9 Months Ended
Sep. 30, 2015
Subsequent Events

16. Subsequent Events

On October 29, 2015, Global Indemnity entered into a redemption agreement with certain affiliates of Fox Paine & Company, LLC and agreed to redeem 8,260,870 of its ordinary shares for $190 million in the aggregate from affiliates of Fox Paine & Company, LLC. Global Indemnity also acquired rights, expiring year end 2019, to redeem an additional 3,376,561 Ordinary Shares for $77,660,903, which amount is subject to an annual 3% increase. The Company is in discussions with affiliates of Fox Paine to acquire rights to redeem a further 1,146,716 ordinary shares on the same terms as the 3,376,561 share redemption rights. After giving effect to the share redemptions and regardless of whether or not the additional redemption rights are exercised, affiliates of Fox Paine will continue to have the ability to cast a majority of votes on matters submitted to Global Indemnity shareholders for approval.

Had the redemption occurred on or prior to September 30, 2015, outstanding shares would have been 17,472,318 as of September 30, 2015.

In connection with the redemption, the Company sold $279.9 million of securities from its consolidated investment portfolio during October, 2015, which resulted in a realized gain of $1.6 million. $102.0 million was used to pay down margin debt, with the remainder being used to fund a portion of the redemption transaction.