
Former Attorney General Ramesh Lawrence-Maharaj has accused Government of engineering an elaborate and well thought out plan to maintain control of the valuable assets of the CL Financial Group to ensure “only certain persons” benefit from the liquidation process.
He told shareholders at a meeting at the Centenary Hall, St. Mary’s College, Port-of-Spain, yesterday that the petition filed by Government for a provisional liquidator to be appointed and the company wound up could have a disastrous effects on the valuation of the assets if it is granted and could lead to a fire sale of the company’s assets.
Maharaj said an extra-ordinary shareholders’ meeting scheduled for tomorrow afternoon is intended to garner the views and support of those who want the company to achieve viability once more.
He said government had failed to submit audited financial statements to the court in support of its petition for insolvency thus far.
“It is my hope that the court would recognise the petition is deficient,” he said
Maharaj said with Government injecting monies into some of CL Financial’s subsidiaries, returns would have been placed in the Statutory Fund.
“Their position is you must take the value of the assets of CL Financial in considering the question of solvency, but cannot take the assets of the value of the subsidiaries,” he said, adding that this was highly improper, unjust and inequitable.
According to Maharaj, the current government-controlled board is not resisting the application to wind up the company and Government is effectively seeking an ex-parte order of himself to himself to wind up the affairs of the company.
He further claimed that Government had filed the petition as a creditor, not as a regulator whose interest is ensuring preservation of taxpayers’ funds .
Maharaj said no evidence had been presented to the court to suggest that the shareholders will not honour the debt owed to Government.
He added that two separate reports prepared by Price Waterhouse Coopers and Ernst and Young found that CL Financial was in a position to repay its debt and that liquidation would be disastrous for the company.
Afra Raymond expressed a no-confidence vote in the return of CL Financial to Lawrence Duprey. He said he did not agree with this move as Duprey had previously held the reins until the company encountered trouble in 2009.
Meanwhile, Plenipotentiary Representative of Grenada to the Caribbean Community (Caricom) Dr. Patrick Antoine said action has been initiated against the company to ensure regional residents also benefit from the exercise, as they had previously been excluded.
The collapse of the Clico/Baico investments in 2009 left the Trinidad-based companies in billions of dollars of debt and many policyholders, especially in the OECS member territories, desperate to recover their monies.