Bridgetown.
Deloitte Consulting the Judical Manager of CLICO HOLDINGS BARBADOS Limited, has been placed the company in receivership with immediate effect, thereby speeding up the likelihood of repayment for CLICO International Life’s (CIL) 25 000-plus policyholders.
The receivership now gives the Judicial Manager full control over the assets of the holding company, which they can now dispose of to satisfy the needs of the policyholders and they can also seek to determine whether the funds advanced by CLICO, the insurance company, were properly utilised for the benefit of the policyholders,” asserted the BIPA chairperson.
In a release last night Deloitte said its decision was in keeping with the basis of its appointment to act in the interest of policyholders.
It explained that by placing the holding company under receivership, the intention was to preserve the assets and maximise the recovery value on behalf of the thousands of policyholders.
Deloitte pointed out that in its interim report filed on May 27, 2011, the life insurance arm – CLICO International Life – had disclosed assets of $802 million, which included $370 million owed by related companies and $319 million by the holding company.
“As such, the realisation of the CHBL debt is crucial to any plan for the effective restructuring of the entity,” the release stated.
The final restructuring plan as set out by the Judicial Manager, in its report of June 14, 2013, estimates that total assets of CLICO Life, as at December 31, 2012, amounted to $448 million at fair market value. Of this, added, Deloitte Consulting, $173 million represented assets owed from related businesses.
