CL debt climbs to $14B; hunt on for new managers

A report in the Trinidad Guardian Friday says the Government of Trinidad and Tobago is trying to find new managers for Clico and its parent company, CL Financial, as the CL debt reached about $14 billion.

The report quoted sources saying that CL Financial owes local and regional banks $4.6 billion while its subsidiaries owe banks another $4 billion and other debt has been put at $3.4 billion.

The papers said in addition, its sources have confirmed that CL Financial owes large sums of money to many of the region’s financial institutions totalling more than US$490, which is over TT$3 billion.

Last November CL Financial executives told the cabinet unless the conglomerate got direct subventions from the government it would have to start selling assets to service its debt.

The paper said CL Financial insiders have said the group can repay most of its bank debt and begin to service its debt to Clico Investment Bank and Clico if it sold the Jamaican rum company, Lascelles deMercado in 2010.

In 2008 former CL boss Lawrence Duprey bought an 86 per cent stake in the company for US$674 million. CL executives have asked for cabinet approval to sell the Jamaican company and recover the original purchase price.

The Guardian report said bankers are also looking to work with the Government to restructure the US$315 million debt that CL's land and mall developer subsidiary owes.

And there are efforts to refinance the debt owed by Angostura Holdings, which is 44 per cent owned by CL Financial and 34 per cent owned by Clico.