CLICO Holdings Barbados (CHBL) has been placed under receivership with immediate effect, according to Deloitte Consulting, the judicial manager of CLICO International Life Insurance (CIL).

Deloitte Consulting stated in a press release yesterday that its decision is in keeping with the basis of its appointment to act in the interest of policyholders.

“By placing CHBL under receivership, the judicial manager’s intent is to preserve the assets of CHBL and maximise the recovery value on behalf of policyholders,” Deloitte said.

According to the judicial manager, it identified that CIL, in its interim report filed on May 27, 2011, reported assets of B$802 million, of which B$370 million were amounts due from related companies and B$319 million from CHBL.

As such, the realisation of the CHBL debt is crucial to any plan for the effective restructuring of the entity, Deloitte said.

According to Deloitte, the final restructuring plan as set out by the judicial manager in its report of June 14, 2013 estimates that the total assets of CIL as of 31 December, 2012 amounted to B$448 million at fair market value, of which B$173 million represents assets due from related companies.

“The said final restructuring plan is predicated upon the inclusion of assets of CHBL in a new company. As such, the judicial manager must be in a position to transfer the realisable value of CHBL’s indebtedness to the benefit of CIL in order for the final restructuring plan to succeed,” stated the press release.