Clico (Guyana) has enough to pay-off policyholders

Jan 17, 2010 News

– But Camp street building at risk of being sold-off cheaply

CL Financial, the parent company of failed insurance giant, Clico, says that the company is in the court to protect its assets and the interest of the policyholders, and is of the opinion that the proceedings in the court have no basis.
This statement, from a source in CL Financial in Trinidad, comes upon revelation by the Clico (Guyana) office that the $2 billion the company received after selling the bonds it held in the Berbice Bridge Company has been deposited in the company’s account and no policyholder has been paid from it. The source indicated that the proceeds from the sale of the Berbice River Bridge bonds, the $3 billion the Trinidad government has given, and the sale ‘at true value” of the company’s newly constructed building on Camp street, Georgetown could add up to pay-off policy holders.
However, the source indicated that the Camp Street building is at risk of being sold off cheaply. The source pointed out that the lone bidder – Queens Atlantic – tendered a bid for $500 million, which is less than one-third of the value of the building.
Chief Justice Ian Chang has delayed his ruling on the winding-up of Clico (Guyana). A decision was scheduled for last Tuesday, but Chang was not ready to make a decision.
The CL Financial source saw it necessary to state the company’s position following media reports that the legal action the company has taken is holding up the pay-off to policyholders.
Since the collapse of Clico, the government of Trinidad and Tobago assumed legal control over the CL Financial conglomerate, thus having total control over Clico (Guyana).
The Commissioner of Insurance, Maria Van Beek, set the stage for the legal proceedings when she applied to the court to wind up the company, but the Chief Justice ordered that the company be placed under judicial management.
That was in early February last year when it was revealed that more than half of the company’s assets ($6.9 billion) were tied up with Clico (Bahamas), which encountered a financial collapse and was liquidated.
However, the CL Financial source indicated that Clico only entered an appearance in the court to save the company, if feasible, or, in the event of liquidation, ensure that the assets of the company are not disposed as in a fire sale and ensure policyholders receive all funds due to them, and not a percentage now and the remainder in bonds or other deferred payments.
The source argued that the Clico crisis in Guyana was badly handled, since it was the only subsidiary placed under judicial management while the administrative executives who put the company in the crisis have been retained by the judicial manager and are being paid “superfluous salaries” at the expense of policyholders.
The source indicated that CL Financial supports the early resolution of the case and a fair and just trial as any entity entitled to us under the laws and constitution of Guyana.

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Clico (Guyana) has enough to pay-off policyholders

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