The High Court of New Zealand has ordered CBL Insurance, the main subsidiary of CBL Corporation, be placed into interim liquidation.
The High Court’s decision follows a request from the country’s central bank. The Reserve Bank of New Zealand is currently reviewing the adequacy of the company’s reserves in its French construction insurance business.
The insurers parent company confirmed partners at insolvency firm McGrath Nicol, Kare Johnstone and Andrew Grenfell, have been appointed as interim liquidators.
“The interim liquidator has been appointed pending the outcome of an application to the Court for the appointment of a liquidator to CBL Insurance. This appointment is not in respect of CBL Corporation Limited or any other companies in the Group,” CBL Corporation said in a statement.
Early this month, the New Zealand Stock Exchange suspended CBL Corporation’s stock due to concerns that the company failed to give information to the market.
On 20 February, CBL Insurance Europe was ordered to cease writing new business by the Central Bank of Ireland following an initial order ordered to bolster its capital and reserves.
Based in Dublin, CBLIE provides builder’s warranty, income protection, travel and cargo and reinsurance support across European Union markets, with significant business in France, Italy, Scandinavia.
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