Goldmans to advise on CBL options

Administrators granted extension by court.

The High Court has given administrators more time to work up options for stricken insurer CBL Corporation, extending the deadline for a watershed meeting to May 18.

In a statement to the NZX, Brendon Gibson and Neale Jackson of KordaMentha said they were in the process of appointing investment bank Goldman Sachs to advise on options to realise CBL’s assets.

No sale transactions had been agreed so far, they said.

Under the Companies Act, administrators must call a watershed meeting of creditors 20 working days after their appointment. CBL called in KordaMentha on February 23.

The watershed meeting must vote on the next step for the company, such as liquidation, a deed of company arrangement or an end to the administration.

In the NZX statement, administrators said they had been granted court orders extending the time in which to call a meeting to May 11, with the meeting required to be held no later than May 18.

“The extension has been obtained to ensure that creditors can be fully informed at the watershed meeting, when deciding on the companies' future,” they said.

A watershed report will be issued to creditors and to the market no later than May 11.

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