Caribbean360: Governments’ support sought for new CLICO restructuring plan

Governments’ support sought for new CLICO restructuring plan
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Chris Hoyos on 23/09/2011 09:56:00
 
BRIDGETOWN, Barbados, Friday September 23, 2011 – The judicial manager of
CLICO International Life Insurance Ltd, Deloitte Consulting, has announced that
it will begin talks, next week, with the governments of Barbados and the Eastern
Caribbean to fund a restructuring plan for the company.
It has put forward four recommendations costing between Bds$56 million and
Bds$152 million, which it said, it believes to be most advantageous, and in the
interest of the company’s policyholders.
“The Judicial Manager will shortly commence the hosting of policyholder forums
to provide policyholders with a comprehensive update on the financial condition
of CIL and the various options considered for restructuring,’ the company
stated.
“These forums, scheduled to commence next week, will be held in Barbados and
in all the Eastern Caribbean territories where CIL has a presence.”
The company said individual letters would be sent to all policyholders in the
territories outlining the potential impact that the restructuring options would
have on their policies.
Deloitte Consulting plans to seek support from the courts in all countries for
the restructuring plan, special dispensation from the insurance regulators to
allow CIL to pledge certain real estate assets to meet its statutory Insurance
Fund obligations, and regulatory approval to write new business in the
jurisdictions in which CIL currently operates.
The High Court of Barbados has also already approved a recommendation by the
Judicial Manager to commission a forensic audit into the company.
Oliver Jordan, who represented the judicial manager at a media conference
Thursday, said this will be conducted by the Forensics & Dispute Services of
Deloitte Canada.
Jordan sought to reassure policyholders, saying, “It has been a difficult
period, but we are moving toward a solution. We have some options in place now
and we will work quickly with the Governments to try to get a firm position and
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