CLICO (Guyana’s) Judicial Manager, Maria van Beek has secured High Court orders locking down the assets of two local subsidiaries of CL Financial with the consent of one of the companies, but attempts are ongoing to block any money flow between two other companies here and the Trinidad parent company.
Chief Justice (ag) Ian Chang had granted temporary injunctive relief to van Beek against Caribbean Resources Ltd and Premium Security Services following an application by the judicial manager earlier last month, and last week he made the orders final until the court case pertaining to the winding-up of the CLICO (Guyana) is determined.
But the court is still to consider the application against British American Insurance Company and Bosai which also borrowed money from CLICO (Guyana).
Premium Security Services has consented to the court lockdown by the Judicial Manager, putting in an appearance in court last week.
However, Caribbean Resources Ltd is yet to enter an appearance in the matter.
In the court application on March 6, van Beek requested a mareva injunction or other interlocutory order restraining Caribbean Resources Ltd from disbursing monies or valuable consideration to CL Financial or any of its subsidiaries including CLICO (Guyana) in payment in full or in part of any indebtness it may have, or as an advance until the determination of the proceedings or further order of the court.
The judicial manager said she was able to confirm that Caribbean Resources Limited, a subsidiary of CL Financial Ltd, borrowed approximately $1.5 billion from CLICO (Guyana) and that the sum was guaranteed by CL Financial Ltd partly by way of debenture registered in the Deeds Registry, initially in the sum of $211 million and with miscellaneous but wholly unreliable guarantees as to the difference.
Similarly, she applied for injunctions restraining British American Insurance Company; Bosai Mineral Group and Premium Security Services from paying out any monies to CL Financial or to CLICO (Guyana).
She said that Clico Investment Bank Ltd, a company registered in Trinidad and Tobago, a subsidiary of CL Financial, advanced to Bosai Minerals Group (Guyana) Inc loans in the sum of US$10 million and US$8 million, respectively and whose net sum due, owing and payable is estimated to be US$15 million.
Within days of her court appointed position, van Beek, through her lawyer Senior Counsel Ashton Chase, applied for a series of injunctions to restrain any disbursement of funds to CL Financial, saying in court documents that irreparable harm would befall policy holders and other creditors who have an interest in the financial viability of CLICO (Guyana) if its parent company is permitted to move or receive assets out of Guyana.
