(Barbados Nation) The way now seems to be clear for a restructuring plan for CLICO International Life Insurance Limited (CIL) to be put in place.
This follows Cabinet’s approval of the judicial manager’s recommendations.
This formal approval enables the judicial manager, Deloitte Consult-ing Ltd, to start the process of implementing the final recommendations contained in the report and addendum presented to the High Court last June, with the aim of having a regional solution to the long-running situation.
It will see, among other things, the creation of a new insurance company (NEWCO) to take over the insurance business by yearend, along with the creation of separate entities which will own the real estate and other illiquid assets. These property holding entities will issue bonds to the new insurance company which will be guaranteed by Government.
This development has however been cautiously greeted by the Barbados Investors & Policyholders Alliance Inc (BIPA), which represents the thousands of Barbadians with money tied up in CLICO and its sister company British American Insurance Company (Barbados) Limited since their collapse in 2009.
On Wednesday night, BIPA chairperson, June Fowler, said they were relieved that progress has been made, “even though the only thing that has changed since June last year is that we now have Cabinet’s approval and a timeline has been given.
“The devil is always in the detail so we now have to sit down with our team of advisors to further examine the other things outlined in the Press release,” added Fowler.
