Feb 2009 Financial News

Central Bank move 'a surprise'

Feb 25, 2009

PORT-OF-SPAIN, Trinidad – A High Court judge has granted an ex-parte injunction to the Central Bank of Trinidad and Tobago (CBTT) and the Colonial Life Insurance Company Limited (CLICO) preventing the embattled local conglomerate CL Financial from conducting any local or international business with its assets.

CL Financial Group finance director Michael Carballo said he was surprised at the move by the CBTT.

"I can confirm that since the intervention by the Central Bank . . . . CL Financial has not dealt with, or disposed of any assets held by CL Financial, and it is the general understanding that if there is any arrangements between CL Financial and its assets, we would certainly get the confirmation from the Central Bank to deal with any particular assets," he told the NEWSDAY newspaper yesterday.

"I am very surprised as to what exactly could have precipitated this move to grant an ex-parte injunction. I just got off the phone with the chairman (Lawrence Duprey) who is in Florida. He too is surprised, and said he would address the matter first thing this morning."

The restraining order issued by Justice Gregory Delzin prevents CL Financial from dealing with, selling, pledging, assigning, mortgaging, charging, disposing, transferring, divesting, diminishing the value of all or any of the assets, howsoever held by or to the use of, and or vested in the defendant, wheresoever located, and howsoever described.

Lawyers for the CBTT made their application over the weekend and the judge ordered that "CL Financial whether by its board of directors, senior management, officers, servants, agents, subsidiaries, associated, related, or affiliated companies over which it exercises control, or whosoever otherwise be, and are hereby restrained, and an injunction is hereby granted restraining them from doing or causing to be done the following acts without prior notice to and the prior approval of the Central Bank of Trinidad and Tobago".

CL Financial must also "disclose to the Inspector of Financial Institutions, or his designated officer, the identity, and location of all or any assets of CLICO in or out of the jurisdiction, and provide a sworn affidavit of the chief executive officer, or chairman of CLICO within two working days of service of the order". (CMC)


Source:
Nation News
Wednesday February 25, 2009

http://www.nationnews.com/story/338331478014618.php