Judge rules against Govt’s move to appoint liquidators for CL Financial

The court was being asked to appoint the liquidators in conjunction with action taken by Government which has also petitioned the High Court to have CL Financial wound up because it is unable to pay the $15 billion debt.

The winding up hearing is set for July 25. At a marathon session at the Hall of Justice late yesterday, the judge heard from attorneys for the State who filed an application for the appointment of the provisional liquidators.

In its winding up petition, the Government has argued CLF is insolvent and its continued operation is reckless. It has also said it was in the public’s interest to have the conglomerate wound up to repay its debt to the Government and other creditors. It also noted that shareholders have sought to undermine the conditions under which the Government agreed to provide financial support to CLF and its subsidiaries by seeking to remove the government’s directors on CLF’s board.