Investors willing to repay Govt

However, he said shareholders are “starved for information” and are being suppressed.

“All our investors want to come in but in order for that to happen, due diligence must take place,” Reis said. He added that for the eight years Government has been in control of CLF, they have not produced any audited statements.

Reis spoke to reporters at the Hall of Justice in Port of Spain after the hearing of Government’s winding up petition was adjourned to September. On Tuesday, the appellate court gave Government permission to hire two provisional liquidators to preserve the assets of CLF until the winding up petition is granted by the court.

PRIVY COUNCIL LOOMS Reis said yesterday the shareholders are willing to take their fight to the Privy Council in London.

At yesterday’s hearing, Justice Kevin Ramcharan, who last week denied the State’s application for the appointment of the liquidators, gave directions for attorneys representing the CLF shareholders to put forward their opposition to the winding up action.

They have until August 4 to do so. The judge said it was not in the interest of the company, its shareholders and creditors to have the matter go on for too long. Government’s decision to seek to hire liquidators and have CLF wound up is based on a move by shareholders to regain control of the company.

As the principal creditor by virtue of the $23 billion bailout of CLF and its subsidiaries in 2009, Government has the majority of the directors on the board. The government claims the company’s level of insolvency still poses a systemic risk to the country’s financial system and after eight years, it will not recover to a satisfactory state of solvency.

But Reis said this was nonsense.

He said the accounts are wrong but it will be up to the courts to decide whether the company should be liquidated.

He said liquidating CLF will lead to a systemic financial collapse since CLF was spread throughout the country and the Caribbean.

GOVT FEASTING ON CLF “They (Government) do not want to let go. They are feasting on the company,” he said, adding CLF has turned into a state company where its chairman and directors are being paid exorbitant fees.

According to the appellate court’s orders, provisional liquidators Hugh Dickson and Marcus Wide of international accounting firm Grant Thornton will have the powers to protect and conserve the assets of CLF and curtail wasteful expenditure and liabilities pending the determination of the winding up petition.

They will also have the power to take possession and collect the assets to what CLF is entitled and do all things necessary to protect assets in this country and any other jurisdiction.

They will also have the power to investigate the affairs of CLF and bring, continue or defend any legal action brought on behalf of CLF.

They will also have the power to retain and operate the existing bank accounts of CLF and open and operate new accounts, pay any necessary expenses incurred and the power to enter or terminate any contracts relating to the company.

The court’s order also gives the liquidators the power to sell, distribute or part with the assets of CLF with the court’s approval, retain or dismiss employees, maintain insurances or make a proposal under the Bankruptcy or Insolvency act on behalf of the company.

The company also has 21 days in which to submit to Dickson and Wide a statement of affairs, showing the company’s assets, debts and liabilities, a list of its creditors and the securities held. The two are also required to present to the court and the shareholders’ accounts of costs and expenses incurred every three months, beginning from November.