A report in the Express newspaper says CL Financial and its insurance provider, CLICO, are in deeper financial troubles that expected. The report said one of CL's more profitable overseas companies is showing a US$18 million shortfall between liabilities and assets. It cites a report filed in the Bahamas Supreme Court by provisional liquidator Craig Tony Gomez in relation to CLICO Bahamas.
Gomez's report listed the Bahamas subsidiary's total assets at US$116,965,096 and its total liabilities at US$135,085,964.
The reported also noted that the company has a "considerable amount of critical claims", which include death benefits, emergency surgeries, cancer patient treatments and HIV patient treatments.
Another CLICO subsidiary subsidiary, CLICO Enterprises Ltd., owes CLICO Bahamas US$73 million. CLICO Enterprises borrowed the money to help finance a Florida real estate deal.
The money, which would put CLICO Bahamas in a liquid position, is "not currently collectible" because of the downturn in the US real estate market, the liquidator's report stated.
He said this has further endangered the asset base of CLICO Bahamas and its ability to service policyholders.
CLICO Guyana and CLICO Suriname are also claiming policy packages of US$34 million and US$15.5 million respectively with CLICO Bahamas.
But Gomez's report suggests that although those funds initially went to CLICO Bahamas, they were immediately forwarded as cash to a United States bank account.
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