Trinidad and Tobago’s government established a $1.9 billion trust last week to resolve the claims of policyholders who invested in the failed conglomerate CL Financial.
The company’s holdings once included banking, manufacturing and retail interests as well as the insurance subsidiaries CLICO and the British American Insurance Company. CL Financial was the largest private business conglomerate in the Caribbean, but a cash flow crisis led to the company’s near collapse and bailout by the government in January 2009.
The country’s Cabinet approved the transfer of 51.9 million shares in Republic Bank, which will fund payments to the policyholders in the conglomerate’s insurance divisions, Winston Dookeran, the country’s acting prime minister, said Friday.
See the Jan. 12, 2012 edition for full coverage.