Voluntary administrators of New Zealand-based CBL Corporation have recommended the firm be placed into liquidation.
Administrators Brendon Gibson and Neale Jackson, in a report to creditors, said the liquidation will enable further investigations into the events leading up to the group’s various insolvency procedures.
The administrators also noted that direct subsidiaries of CBL Corporation will remain in administration at this time.
“The administrators believe that having those subsidiaries remain in administration best supports the asset realisation processes that are underway for the business units,” they said. “It also retains optionality for any future restructuring proposals to be put to creditors.”
In their statement, the administrators said they will continue to collaborate with CBL’s directors, who are working on a proposal to restructure the group.
The administrators do not have control of the group’s insurance businesses – CBL Insurance New Zealand and CBL Insurance Europe. This limits the information available to the creditors about the status of those key businesses.
“It is too early to assess the return to creditors or shareholders,” the administrators added. “This will be dependent on:
Gibson and Jackson, of KordaMentha, were appointed as voluntary administrators on February 26. This came days after the High Court appointed interim liquidators to CBL Insurance following a request from the Reserve Bank of New Zealand (RBNZ). It was later revealed that CBL Insurance breaching directions made by RBNZ prompted the regulator’s move against the company.
The voluntary administrator will call the creditor’s watershed meeting on May 18.
