The Reserve Bank’s (RBNZ) application to liquidate CBL Insurance won’t be heard in the Auckland High Court on Tuesday as planned.
The RBNZ’s counsel, Scott Barker, says he can’t comment further, noting there are confidentiality orders in place.
The court on April 27 heard that two of CBL Insurance’s directors, Peter Harris and Alistair Hutchinson, believe the company is “solvent to the tune of $70 million”.
CBL Insurance was on February 23 placed into interim liquidation.
The RBNZ alleges CBL Insurance breached orders made by the prudential regulator over concerns around its solvency, by paying $55 million to overseas companies in February.
CBL Insurance is a subsidiary of the NZX-listed company, CBL Corporation, which is in voluntary administration.
Its voluntary administrators, Brendon Gibson and Neale Jackson of KordaMentha, recommend CBL Corporation be placed in liquidation.