Bahamian liquidator mulls ‘Creditors Committee’

Jun 19, 2010 News

…as Guyana’s court battle continues

The Official Liquidator of Colonial Life Insurance Company (CLICO) Bahamas, Craig A. (Tony) Gomez, will convene a meeting of all creditors of the company on Monday to determine whether a Creditors Committee should be established.
According to that official’s statement, “If it is agreed that a Creditors Committee be constituted
then the Official Liquidator will receive nominations from the Creditors present and/or their representatives for persons to be appointed to the Creditors Committee.”
The opportunity will also be used by the Official Liquidator to provide an update on the progress of the liquidation.
Since Guyana’s claim is not recognised by the liquidator, CLICO (Guyana) will not be represented at that meeting which will be held at the British Colonial Hilton, Nassau, in the Bahamas.
The Liquidator of CLICO (Bahamas) has rejected almost US$34M worth of claims made against the insolvent insurer by its affiliate in Guyana.
He said that information on irregularities with respect to money from CLICO (Guyana) being transmitted directly to purchase real estate in Florida was in the public domain since the Company filed for liquidation.
“Preliminary view of the documentation suggests that policies were never issued by [CLICO Bahamas]. Moreover, the premiums received by Guyana and Suriname were never paid to [CLICO Bahamas],” According to Gomez.
“It appears that the funds were remitted directly to a bank account held in the name of [CLICO Bahamas] at Ocean Bank, Miami, Florida, and to another account held by the company in Trinidad.”
CLICO Bahamas was placed into liquidation on February 24, last, and CLICO (Guyana) was placed under judicial management a day later.
Hubert Ingraham, Prime Minister and Finance Minister of The Bahamas, subsequently told his Parliament that there was no trace of Guyana’s investment in that country, a paper trail of investments was immediately dispatched to that country’s liquidator to assist in the location and classification of CLICO (Guyana’s) investment.
The money was located but was deemed an inter company loan and as such would not have qualified as a priority in the repayment process by the liquidator.
Guyana subsequently retained the services of attorney-at-law, John Wilson, of McKinney Bancroft and Hughes, to fight court-appointed liquidator, Craig Tony Gomez, on the issue of Guyana’s US$34M investment in CLICO Bahamas.
Meanwhile, Guyana’s appeal in the Bahamian Supreme Court continues.

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