The Atlas Financial Holdings, Inc. scheme of arrangement (the “Scheme”) was sanctioned by the Cayman Court in an order (the “Sanction Order”) by the Grand Court of the Cayman Islands (the “Cayman Court”) entered on February 25, 2022, sanctioning and approving the Scheme pursuant to section 86 of Part IV of the Companies Act (2021 Revision) of the Cayman Islands.  The Scheme has also been recognized by the United States Bankruptcy Court in the related Chapter 15 proceeding pursuant to the Order (I) Recognizing Cayman Proceeding as a Foreign Main Proceeding (II) Enforcing the Scheme of Arrangement Withing the United States and (III) Granting Related Relief, dated March 30, 2022. The restructuring effective date is April 14, 2022.

On the Effective Date, (a) the Global Note representing the 6.625% Senior Unsecured Notes (the “Notes”) (represented by CUSIP G06207123 and 049323108) is cancelled; and (b) the New Notes (represented by CUSIP 049323AB4) are issued.  The Notes were issued with a value of $25 for each “1” of Note security share held.  The New Notes have an interest rate of 6.625% per annum, if paid in cash, and 7.25% per annum, if paid in kind (“PIK”).   As a result of the PIK feature, the New Notes are issued in increments of $1. The Scheme provides for a one-for-one mandatory exchange of the Notes into the New Notes – plus accrued and unpaid interest which will be capitalized into principal.  In the Mandatory Exchange, for each “1” of the Note security share held, a holder is receiving $26.63985600 in New Notes, comprised of $25.00000000 in principal amount plus interest in the form of additional New Notes at the rate of $1.63985600.  This is the first and final distribution under the Scheme to holders of the Notes.

Atlas Financial Holdings, Inc. 

Dated:  April 14, 2022