CBL Insurance placed into liquidation

liquidation-loophole

CBL Insurance’s administrators had been working on a restructuring proposal, but the firm has been placed into liquidation.

Two major creditors of CBLI did not support restructuring through voluntary administration, it is understood.

Administrator Neale Jackson said: “In our view, a restructuring proposal implemented through a voluntary administration offered the potential to deliver a better outcome for CBLI’s creditors and creditors of the wider CBL Group companies. Ultimately however two of CBLI’s major creditors did not support voluntary administration, which is their right.

“We will continue to focus on the issues across the remainder of the companies in administration, while watching with interest progress in CBLI’s liquidation.”

CBLI’s voluntary administration watershed meeting had been pushed back multiple times from July to late December.

Last Thursday, CBL’s administrators also announced it had agreed the sale of Australia-based subsidiary Assetinsure to Lombard Australia.

UK-based European Insurance Services staged a management buyout from CBL in September.

In July, the Ardonagh Group’s owners bought free protection insurance provider PFP from the corporation, while French-based CBL-broker SFS Insurance placed itself in voluntary liquidation.

CBL plunged into interim liquidation in February of this year. Danish unrated insurer Alpha, which relied on the Australian firm for a chunk of reinsurance, blamed its demise on CBL when it fell into liquidation shortly after in March.

CBL’s European operations remain in administration.

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