IT’S a fire sale.
That’s how the majority shareholders of CL Financial (CLF), represented by the United Shareholders Company Ltd, and the CLICO Policy Holders Group, are viewing the Government’s petition to wind up the conglomerate.
They believe the winding-up and liquidation of CLF would ultimately lead to the liquidation of Colonial Life Insurance Company (CLICO).
If CLF were insolvent, as the Government claims, then it would not make the $15 billion debt which the Government says it is owed, and they believe CLICO would ultimately be liquidated to meet the debt gap.
There is also concern a “fire sale” in a depressed economy such as T&T’s would raise little money at this time to satisfy the Government’s debt. These claims were made in a joint news conference with the two groups at The Residence restaurant, One Woodbrook Place, yesterday.
The shareholders called on the Government to meet and negotiate with them.
On Tuesday, the Government petitioned the High Court to have CLF wound up, arguing it was unable to pay its $15 billion debt.