State to appeal ruling in CLF liquidation judgment

On Wednesday, Ramcharan dismissed the Government’s application, saying it was filed prematurely.

He held that the State was unable to prove that the board of directors, should its composition change following a special meeting of shareholders of CL Financial set to take place next Tuesday, would move to dispose of the company’s assets.

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 its $15 billion debt.

The winding up hearing is also set for next week Tuesday.

In its winding up petition, the Government has argued that CLF is insolvent and its continued operation is reckless. It has also said that it was in the public’s interests 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.