(Trinidad Express) Both CL Financial and subsidiary CLICO have issued pre-action protocol letters to Barbados-registered Proman Holdings Ltd as the companies seek to recover 51 per cent of CLICO Energy Ltd (CEL).
CLICO is seeking to recover its 17 per cent interest while CL Financial is seeking to recover its 34 per cent interest in CEL.
The Sunday Express understands the pre-action letters were sent last week.
CLICO Energy was sold to Proman on February 4, 2009, just three days after the then-People’s National Movement (PNM) government signed a Memorandum of Agreement with former chairman Lawrence Duprey on January 30 to provide an initial TT$5 billion to rescue CLICO, CLICO Investment Bank and other financially troubled subsidiaries.
The German company issued a cheque for CLICO Energy for US$47 million but the government objected to the quick sale, initiated court proceedings and instructed that the transaction be reversed.
The reversal of the sale was itemised in the Shareholders Agreement signed on June 12, 2009 between CLF shareholders and the Government.
Under item 6 titled ‘Proman/Clico Energy’ it stated: “The present directors shall use their best endeavours to procure the reversal of the sale.”
The government agreed that, if the sale was reversed, it would “use its best efforts” to stop the court action it had initiated.
After almost three years and just two weeks short of the expiration of the Agreement, the CLICO Energy sale has not been reversed.
The evaluation of CLICO Energy and its sale has been featured extensively in Sir Anthony Colman Commission of Enquiry into the collapse of the companies.
Former finance director Michael Carballo had told the commission that CLICO Energy was valued at over US$200 million, had been sold for a paltry US$46.5 million, with the knowledge of three CLF directors-Gita Sakal, Rampersad Motilal and Duprey.
CEL, Carballo had explained, was one of three assets, the other two being MHTL and Republic Bank Ltd owned by CLICO, which CLF’s 289 depended on for cash.
For her part, Sakal had told the commission she was approached by Duprey to initiate talks with Joseph Cassidy for the sale of CEL.
He said: “CLICO Energy shares were the only asset of any real value that I knew of which CLF could sell almost immediately. Proman had a right of first refusal under the terms of the shareholders agreement.”
