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Voluntary administrators of New Zealand-based CBL Corporation, which has arms in both the UK and Ireland, have advised that the watershed meeting of the CBL group of companies is to be further adjourned.
According to administrators Brendon Gibson and Neale Jackson of KordaMentha, the High Court has granted their application for further extension for the watershed meetings. The meetings will now be held no later than November 17, or any date prior by giving all creditors no less than five working days’ notice.
The dates of the watershed meetings were previously aligned with the expected resolution of the status of one of CBL’s largest subsidiaries, CBL Insurance Ltd, which is in interim liquidation. A hearing to determine whether it would be permanently placed into liquidation was scheduled to start last week. However, on July 27, the High Court ordered that the hearing be vacated, and a new date has not yet been set.
Jackson noted that the outcome for CBL Insurance is a “key consideration in assessing the potential options for the group.” This includes the restructuring plan that is being proposed by two of CBL’s directors.
He went on to say that: “The position of CBL Insurance also impacts on CBL Insurance Europe, another of CBL Corporation’s subsidiaries, as is explained in our watershed report.
“The late adjournment of the CBL Insurance liquidation hearing has necessitated extending the watershed meetings to allow time to consider the impact that the deferral has on the options available to the companies we control.”
The administrators added that one of the options they are considering is whether to proceed with resolving the position of the companies that are in administration despite not knowing the outcome for CBL Insurance. “But, at this stage, that is not our preferred option,” they added.
The administrators believe the postponement of the watershed meetings will not prejudice any of the companies’ creditors or other stakeholders. The High Court has granted leave for any interested person to apply to vary or set aside the orders.
