Governments’ support sought for new CLICO restructuring plan
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 seek a resolution.”