Directors of CBL Insurance, which was recently placed into interim liquidation, claim the company is solvent, it has been revealed.
According to a report from interest.co.nz, an affidavit by CBL Insurance directors Peter Harris and Alistair Hutchinson claims the company is “solvent to the tune of $70 million positive.”
The affidavit was reportedly filed on April 27 with the Auckland High Court. On the same day, the publication said, Associate Judge Warwick Smith told the court that Harris and Hutchinson’s assertion would be addressed on June 05-06 when the Reserve Bank of New Zealand’s (RBNZ) liquidation claim is heard.
On February 23, CBL Insurance was placed into interim liquidation following an application by RBNZ to the High Court. RBNZ, days after, informed the market that CBL Insurance breaching directions prompted its move against the insurer. It added that CBL Insurance made payments of $55 million to overseas companies despite significant doubts about the firm’s solvency.
Moreover, Smith told the court that Harris and Hutchinson are “only two of the six directors of the defendant, and that raises an issue over whether they have the standing to oppose the liquidation claim.”
RBNZ’s counsel Seb Bisley, meanwhile, reportedly didn’t oppose the directors bringing the claim forward. Smith agreed “that course is sensible,” the report added.
