FOLLOWING the August 2020 judgement over disputed matters between liquidators and shareholders of Trinidad and Tobago-based CL Financial, a company which was once the largest financial conglomerate in the Caribbean, property belonging to the company is now being placed on the market for sale.

Liquidators, having clearly determined the totality of assets available for sale, are now proceeding with their disposal.

In Trinidad newspapers, 16 parcels of land parcels have been advertised for sale, with Keen-Summit Capital Partners LLC also inviting brokers to get on board. It was not indicated if the lands include buildings. The properties are listed as belonging to Highgate Development CompanyLimited, Beta Realty Limited and Home Construction Limited.

CL Financial was one of the largest privately held corporations in the Caribbean before the company fell prey to a liquidity crisis and subsequent bailout in 2009. The company started as an insurance company, Colonial Life Insurance Company (CLICO) by Cyril Duprey, and then grew into a diversified company by his nephew Lawrence Duprey. CL Financial in its final state included over 65 companies in 32 countries worldwide, with total assets exceeding an estimated TT$100 billion.

In the last years of this century’s first decade, in hopes of survival, the owners signed a bailout agreement with the Government of Trinidad and Tobago under which it was loaned funds reaching TT$7.3 billion as of December 2010. The funds were intended to support continued operation. The company , however, became insolvent, with the majority owners battling for another decade to retain some assets.

In August 2020, in the High Court case “The Republic of Trinidad and Tobago, in the matter of CL Financial Limited and the Matter of the Companies Act 81:01” in relation to an application by liquidators, Justice Kevin Ramcharan gave judgement in favour of an existing trust which prevented liquidators from accessing for sale some shares placed under trust.

Delivered on 26th August, 2020 the judgement cited facts which it said were uncontested between both parties. It stated, “the company in liquidation is the majority shareholder in CLICO, holding some 51 per cent of its shares. It became heavily indebted to CLICO as a result of several inter-company transactions. This debt was secured by a number of debentures in favour of CLICO”.

“ In January 2009, arising out of financial difficulties, the company in liquidation entered into an MoU with the Government of the Republic of Trinidad and Tobago (GORTT) whereby it would make payments and transfers to reduce the indebtedness to CLICO.”

The judgement further outlined that, at that time, CLICO was put under the control of the Central Bank under the provisions of section 44D of the Central Bank Act, which remains the status quo.

As a result of this, it was stated, the company sought Government approval to transfer its shares in Methanol Holdings International Ltd (MHIL) to CLICO in order to reduce its debt, pursuant to the provisions of the MoU.

Approval was granted and on March 4, 2009 a Declaration of Trust was issued by the company in favour of CLICO with respect to the MHIL shares. In September 2017, on the application of the Government of the Republic of Trinidad and Tobago (GORTT), the company was put into liquidation and the joint liquidators were appointed.

As outlined, in fulfilling their duties as liquidators, the joint liquidators have called in the company’s assets and sought to ascertain its creditors. CLICO submitted a claim for the shares under the Declaration of Trust.

Judge Kevin Ramcharan commented, “In the circumstances, the court is of the view that the Declaration of Trust was validly executed; that the shares did not form part of the assets of the company available for distribution by the joint liquidators at the time of their appointment; and that CLF’s interest in MHIL shares was validly transferred to CLICO by virtue of the Declaration of Trust.”

Liquidators, having clarified the boundaries of assets available for sale, are now selling these assets in settlement of debt owed to the Government of Trinidad and Tobago.