Advisory and investment firm KordaMentha recommended that New Zealand-based CBL Corp. Ltd. be placed into liquidation.
KordaMentha was appointed as CBL's voluntary administrator after local and overseas regulators questioned the adequacy of the company's reserve levels. It noted that the liquidation of CBL would enable further investigation into the events leading to the company's various insolvency procedures, according to a May 11 statement.
The Reserve Bank of New Zealand had called for the interim liquidation of CBL's New Zealand operations, CBL Insurance Ltd., while the Central Bank of Ireland made a similar move against the company's European operations.
The company's direct subsidiaries will remain in administration as KordaMentha believes that this would be the best way to support the ongoing asset realization processes.
Some of CBL's directors are developing a proposal to restructure the group, working alongside the administrators to do so.
KordaMentha said it is too early to assess the return of investments to creditors or shareholders, which will depend on various factors including the restructuring proposal, the sale processes of the company's business units, the outcome of the CBL Insurance and CBL Insurance Europe insolvency processes, and any potential legal actions.
A meeting will take place May 18 for CBL's creditors to vote on proposals for the company's future.