NOW that the High Court has ruled that Clico Life and General Insurance Company (South America) Limited be liquidated, bids are being invited through a newspaper advertisement for the purchase of office buildings belonging to the insurance and financial company.
The advertisement said that pursuant to the Order of the Court authorising the liquidation of the Clico, the Liquidator invites tenders for the purchase of properties: two on Camp Street, South Cummingsburg at lots 191 and 200 – 201, one at lot 161 Lamaha Street, Georgetown, one at 52 area ‘J’ Lamaha Gardens, Georgetown, one at lot 129 Irving and Laluni Street, Georgetown, and one at lot 5 block 1C, east half, Plantation Hydronie, Essequibo. The advertisement said that the bids must be submitted by Friday September 24, 2010, to the Liquidator located at Clico’s Head Office, 191 Camp Street, Georgetown.
According to the advertisement, interested persons must register with Clico Life and General Insurance Company (South America) Limited to obtain tender packages upon payment of $5,000 per property containing a letter of authority to visit the premises, a draft agreement of sale and purchase, the terms and conditions of the tender, the form of tender that must be completed when submitting a bid, details of the property, including ownership documents, photograph and survey plan, and a copy of the advertisement.
According to the advertisement, bids that were received in June 2009 are no longer valid and all persons who previously submitted bids are invited to tender new bids in accordance with the tender package. It said that Clico, under liquidation, is not bound to accept the highest or any bid.
Speaking to reporters on Monday at the Office of the President, President Bharrat Jagdeo expressed the hope that when the bids do come in, the bid prices would approximate the book value of the properties, noting however that this is up to the market to decide. He said if the properties were to be sold at book value, then more resources would be available for reimbursement of policyholders.
The President said if the bids are too low, “then we will have to find alternative arrangements to occupy these buildings and maybe even the State…we do have to build some additional buildings because of the demand for public service. So if we find that the bids are too low, we may very well pay that money in, pay a higher price and acquire these buildings for governmental purposes and therefore there will be more money available to reimburse policyholders.”
On Thursday Chief Justice Ag., Mr. Ian Chang, S.C. ruled that Clico Life and General Insurance (South America) Limited, (Clico) is insolvent in terms of section 68 (1) of the Insurance Act 1998.