Clico Bahamas Serves $365M Claim On CL Financial

Monday 31st, October 2011 / 09:40 Published by

A claim for $365 million has been served on CL Financial Limited in relation to a guarantee reportedly made by the local company to Clico (Bahamas) Limited.

In an official liquidator’s report, Clico (Bahamas) Limited liquidator Craig Gomez has confirmed that lawyers have served a statutory demand on CL Financial as a precursor to a debt recovery action.

“I have requested general counsel to actively pursue the enforceability of CL Financial’s US$58 million guarantee to Clico (Bahamas) Limited, ” Gomez notes in his eighth official report submitted this month to the Bahamas Supreme Court for the period April 1 to June 30. “I was subsequently advised that a statutory demand has to be made first before a debt recovery action could commence in Trinidad.”

“I have asked general counsel (Callenders & Co) to instruct the counsel in Trinidad to proceed with the statutory demand.

A statutory demand was served on CL Financial,” he said. He noted that new counsel was retained and instructed in the matter on June 27.

Money retained by Clico (Bahamas) is expected to be used in the ongoing process of paying policyholders and creditors at the Bahamas branch. Clico (Bahamas) Limited (previously known as British Fidelity Assurance Limited) operates branches in the Bahamas, Belize and the Turks and Caicos. Its parent company is Clico Holdings (Barbados) Limited, though the ultimate parent company is CL Financial Limited.

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