The Reserve Bank of New Zealand pulled out of a liquidation hearing scheduled in the week of June 4 involving CBL Insurance Ltd., Scoop reported.
The hearing was supposed to consider whether to put CBL Corp. Ltd. unit CBL Insurance into liquidation following claims that it breached solvency margins and statutory directions. The High Court placed CBL Insurance into interim liquidation at the central bank's request.
The central bank advised the High Court that it was no longer pursuing a liquidation order at this stage and wanted to postpone the hearing for at least two months, according to the report, citing CBL Insurance Managing Director Peter Harris. But the central bank has requested that the interim liquidation continue.
CBL Insurance, led by Harris and Alistair Hutchison, voiced its opposition to the application for liquidation. The two proposed a number of measures, including executing an initial restructure plan aimed at paying all creditors in full, paying all New Zealand insurance policyholders and retaining the shares of shareholders in the company's future business, to avoid liquidation of both the insurer and CBL Corp., Scoop reported. CBL Corp. has been in voluntary administration.
