-->
Sharechat Logo

Auckland High Court will now hear RBNZ's application to liquidate CBL Insurance at end of July

Wednesday 6th June 2018

Text too small?

The Auckland High has set aside three days beginning July 30 to hear the Reserve Bank’s application to liquidate CBL Insurance, currently in interim liquidation, the central bank said in a release.

The High Court ordered CBL Insurance be placed into interim liquidation on an application by the Reserve Bank as the insurer's prudential supervisor, in late February. The central bank alleged that CBL Insurance breached solvency margins and statutory directions. CBL Insurance is a unit of NZX-listed company, CBL Corp, which is in voluntary administration.

Yesterday the Reserve Bank withdrew from a scheduled liquidation hearing involving CBL Insurance slated to take place this week and requested that the interim liquidation continue.

"Parties opposing the liquidation recently asked the Reserve Bank to give consideration to some additional options for dealing with CBL Insurance. The hearing was deferred at the request of the Reserve Bank to allow any stakeholders the opportunity to present such options and for the Reserve Bank and the interim liquidators to consider those options properly," the central bank said in a statement. 

The application for liquidation is being opposed by CBL Insurance, led by Harris and Alistair Hutchison, as well as KordaMentha, the voluntary administrators of CBL Corp and Elite Insurance, CBL Insurance's largest creditor. 

Harris and Hutchison have proposed an initial restructuring plan that has been circulated to the voluntary administrators with the objective that all CBL Corp creditors get paid in full, NZ insurance policyholders all get paid, and shareholders retain shares in the future business to give them some future value to their shares.

The plan would seek to avoid liquidation of CBLC and CBLI.

 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Not much joy in Fellet's Sky TV swansong
Ebos says underlying net profit boosted by animal care segment
KiwiRail operating earnings start to improve as Picton-Christchurch rail link reopens
Spark 1H profit dips 5.6% as Southern Cross withholds dividend
Power panel favours scrapping low-fixed charges, prompt payment discounts
February 20th Morning Report
FIRST CUT: Fletcher betters first-half guidance with 8% ebit drop
Meridian posts record 1H operating earnings, raises dividend
FIRST CUT: A2 more than doubles 1H net profit
NZD lifts as US-China return to negotiating table, US seeking stable yuan

IRG See IRG research reports