The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

CLICO (Bahamas) liquidator is examining whether to sue its Trinidadian principals over the company’s collapse, his US attorney yesterday confirming to Tribune Business that the insolvent insurer had gained the protection it wanted from an affiliate’s “harassment”.

Disclosing to this newspaper that he and Craig A. ‘Tony’ Gomez, the Baker Tilly Gomez accountant and partner, had “got everything we wanted” during yesterday’s Florida court hearing, Ronald Neiwirth indicated the duo were doing the necessary research to determine if CLICO (Bahamas) could bring a successful claim against Lawrence Duprey, the insurer’s principal.

Detailing “a good day” in the southern Florida bankruptcy court, Mr Neiwirth said it had granted CLICO (Bahamas) the motion it had been seeking to protect it from discovery demands made by its affiliate, Colonial (Trinidad).

The Trinidadian affiliate had demanded that the US court force Mr Gomez to hand over a slew of documents relating to CLICO (Bahamas) and its affiliates, CLICO Enterprises and Wellington Preserve, in a bid to further its alleged $52 million claim against Enterprises.

Its motion to ‘compel’, though, was denied by the south Florida bankruptcy court, which instead granted Mr Gomez’s request for a final decree confirming that Wellington Preserve’s Chapter 11 bankruptcy case was now closed.

“All in all, it was a good day. We got everything we wanted,” Mr Neiwirth told Tribune Business.

“What the court ruled was what I argued; that they [Colonial Trinidad] didn’t have standing to fight a Bahamian battle in the US courts, and even if they did, what they were asking was beyond the scope of Rule 2004.”

Messrs Gomez and Neiwirth had previously alleged that Colonial (Trinidad’s) request was “utterly meritless” and an attempt to “circumvent” the CLICO Enterprises liquidation process in the Bahamas. That process has now started, Mr Gomez having issued a call for proof of claims.

Countering this, Colonial (Trinidad) had alleged that the liquidator was “stonewalling” its requests for information, and that as a CLICO Enterprises creditor it had a right, and standing, to know how the multi-million dollar proceeds from real estate sales at Wellington Preserve were being used once sent to the Bahamas.

In the meantime, Mr Neiwirth told Tribune Business that with no objections received prior to the deadline, and all unsecured creditors paid out previously, the US court had ordered an end to Wellington Preserve’s Chapter 11 bankruptcy case.

The Florida-based real estate project, which accounts for 63 per cent of CLICO (Bahamas) total assets, received some $73 million from the insolvent insurer via CLICO Enterprises, its Bahamian-domiciled affiliate.

With all other Wellington Preserve creditors made whole, any further proceeds from its real estate sales - beyond the $10 million already remitted - can be returned to the Bahamas for the benefit of CLICO Enterprises and, ultimately, CLICO (Bahamas).

“What this leaves us with is Chapter 11, which is a court-ordered mechanism to liquidate the rest of the property and apply the proceeds to CLICO Enterprises,” Mr Neiwirth explained.

Some 241 acres remain to be sold at Wellington Preserve, excluding a previously-announced 41-acre deal that remains pending. Mr Neiwirth indicated he expected sales to slow down over the summer, with a pick-up expected once the party that had acquired a 138-acre slice completed construction later this year.

“It’s somewhat seasonal at the moment,” the US attorney added of sales activity at Wellington Preserve.

“We have one more deal pending right now, and what we’re looking at is the big player who bought 138 acres, and is working feverishly to complete construction and have it ready for next [polo] season.

“We’re hoping other people look at it. I expect additional deals will not materialise until he’s done some construction and people see how nicely it’s turned out.”

The pending deal is a $4.733 million transaction with Symon Garber for a site just over 41 acres in size.

Meanwhile, indicating that Mr Gomez was already looking beyond the completion of Wellington Preserve’s sale, Mr Neiwirth told Tribune Business: “The other part of the picture is that it remains to be seen if there’s any recovery from outside the real estate.

“Lawrence Duprey is under fire in a lot of other jurisdictions; it seems a lot of people are after him for a lot of reasons in other places, and forensics and information gathering are going to be key to any further recovery outside the real estate.

“We’ve got boxes and boxes of bank records that we’re working through.”

Mr Neiwirth, though, cautioned that he and Mr Gomez were “looking at the end game”, and attempting to make sure there were tangible assets to go after should they be successful in gaining a judgment against Mr Duprey. Otherwise, they would just have a piece of paper, in the shape of a court order, to show for their efforts.