Permell: Liquidation of CLF would affect Clico

“We have formed an alliance with them and we endorse what they have to say.” Permell said he would not yet give any in depth comment, but would study Rowley’s points carefully.

“At the appropriate time we’d make the relevant responses.

“In a sense our interests are intertwined somewhat with the shareholders from a perspective of if you start winding up CL Financial, it will eventually trickle down to Clico which is the policyholders.” He said Clico officials claimed yesterday some traditional policyholders now want to surrender their policies.

Permell said that if true this news was “not surprising” but quite “concerning”.

“This has to do with the unintended consequences that could arise from a course of action likely to end up in the liquidation of CL Financial. I hope there’s no truth to that.” He suggested a Government statement to reassure those policyholders that their interests are safe.

Asked if Clico is a viable company, Permell said it owns No Man’s Land in Tobago plus HCL, the country’s second largest land bank after the State.

He said the 2016 Clico audited financial accounts cite a deficit of $910 million (owed to the Government), which the value of all these lands would help offset.

Permell said HCL is valued on the books at about $400 million, but its lands are worth “significantly more” and so must be re-valued.

Permell said he cannot get the value at which No Man’s Land was transferred to the Government last March, but estimated it at $680 million (at “book value”), adding this is likely less than its true market value.

“So that would go a long way in reducing that $910 million.” Carpenter, in a statement, alleged Rowley was “ill advised” and had voiced “certain misinformation.” He complained of a lack of details, such whether the CLF accounts shows the group’s true value. Carpenter said last August the Government said CL Financial must repay $10 billion by June 2017, to which the group proposed “Project Rebirth” but had since got no feedback.

“Clico and CIB (Clico Investment Bank) have been left out of the management accounts of CLF but this is where most of the group’s money lies to repay the Government.” Carpenter said most of Clico’s money is within its statutory fund, to which CLF has no access, meaning CLF cannot order Clico to pay the Government asa policyholder.

“The total asset base of the CLF Group must be looked at in any repayment of the debt.”