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Administration and legal fees for the troubled insurance company CBL Corporation have exceeded $4 million, it has been revealed.
The administrators from KordaMentha charged the New Zealand-based insurer nearly $800,000 in the six months to February for resolving the firm’s future direction, Radio NZ reported. In the same period, lawyers reportedly charged around $900,000 following the deferral of CBL’s liquidation to allow negotiations to take place on a potential restructuring of the group. Additionally, former employees were paid $800,000.
Administrator Neale Jackson said administrator fees were funded by debt, noting that the creditors had approved the strategy. Now, administrators are waiting to receive the majority of the proceeds of selling some of CBL’s international business. So far, they have received $207,000, the publication said.
As of February 22, administrators advised the hearing date for the liquidation of CBL will be held on May 13. Meanwhile, the watershed meeting will be held no later than May 27.
