BRIDGETOWN, Barbados, Friday December 19, 2014, CMC – The Barbados government says it remains fully committed to the court-approved restructuring plan for CLICO International Life (CIL) and its associated companies.
The Freundel Stuart administration said in keeping with this commitment, it has established a new company to initiate and manage the government’s participation in the implementation of the restructuring plan.
The seven-member board of directors of the new company is chaired by financial analyst Glenell Goodman with the former supervisor of insurance Wismar Greaves as his deputy.
The directors of the company have since met with Finance and Economic Affair Minister Chris Sinckler “at which they were appropriately briefed as to their mandate and responsibilities in effecting the proposed restructuring of CIL.
“The Company’s Directors are expected to meet with the Judicial Managers to be fully apprised as to the current administrative and financial status of CLICO. Once this part of the process is complete, the initial short-term capitalisation of CLICO through the new company will commence,” a government statement said.
It said that meeting will also be held with all other critical stakeholders, including the Barbados Association of Policy Holders and Investors (BIPA), as well as national and regional regulators.
“The Ministry of Finance and Economic Affairs wishes to advise that contrary to any impressions which may have been drawn from recent media reports, the Government of Barbados cannot under law transfer any financial resources directly to CLICO or the Judicial Managers from the Consolidated Fund.
“Such resources can and will be transferred to the new company for the management of its affairs and the execution of the proposed restructuring of CLICO once all of the necessary arrangements are in place.
The Judicial Managers are fully apprised of this,” the statement said.
It said that “any attempts to place CLICO International Life or its associated companies into liquidation will therefore be premature, unwarranted and unnecessary”.
CIL was among several companies throughout the Caribbean that suffered after the parent company, the Trinidad-based regional insurance giant, CLICO crashed in 2009, resulting in the government in Port of Spain spending billions of dollars (One TT dollar =US$0.16 in a bailout plan.