A Guernsey captive insurance subsidiary of the troubled Carillion group has been compulsorily wound up by the Royal Court.
Babbé dispute resolution partner Todd McGuffin, an insolvency and insurance expert, assisted by associate Bryan Little, represented the directors of Carillion Insurance Company Limited.
Its parent, the Carillion group, a British multinational facilities management and construction services company, was placed into compulsory liquidation by the English High Court in January with reported debts of £1.3billion and pension liabilities of £587million.
The captive had been in a “run-off” phase of operation – a winding down process – but it was subject to an upstream loan to Carillion Construction which, following profit warnings issued by the Carillion group, was determined by the directors to be unrecoverable.
The Court accepted that a nil value should be applied to the loan and, as a result, the company failed to comply with the Guernsey regulator’s capital and solvency requirements. The Court recognised that these circumstances were down to the insolvency of the parent and not due to the directorship or management of the company.
Nicholas Vermeulen and Christian van den Berg of PricewaterhouseCoopers CI LLP were appointed joint liquidators of the company.
Advocate McGuffin (pictured) said: “The application served as an example of the great skill and experience of the directors in exercising their judgment as to the appropriate treatment of the assets when determining regulatory solvency requirements.”
Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.
There are no comments for this article.