CBL Insurance IPO

[Beagle]

All their assets are safely tucked away in trusts.

Criminal prosecution should be taken to make sure they pay something for tipping this company into liquidation.

"CBL Insurance had recently confirmed to the Reserve Bank that it was continuing to operate despite being below the minimum regulatory solvency level." Isn't this the kind of information that ought to be released to the market at the time?

Yes and Yes. One would hope that criminal prosecution will be pending especially in light of this http://www.sharechat.co.nz/article/2...m-offshorehtml

[Sideshow Bob]

https://www.stuff.co.nz/business/101...about-solvency

[blackcap]

https://www.stuff.co.nz/business/101...about-solvency

If they paid out the money whilst being insolvent.... directors are liable.

52 Board may authorise distributions
(1)
The board of a company that is satisfied on reasonable grounds that the company will, immediately after the distribution, satisfy the solvency test may, subject to section 53 and the constitution of the company, authorise a distribution by the company at a time, and of an amount, and to any shareholders it thinks fit.
(2)The directors who vote in favour of a distribution must sign a certificate stating that, in their opinion, the company will, immediately after the distribution, satisfy the solvency test and the grounds for that opinion.
(5)Every director who fails to comply with subsection (2) commits an offence and is liable on conviction to the penalty set out in section 373(1).

But the penalties are pitiful

Penalty for failure to comply with Act
(1)
A person convicted of an offence against any of the following sections of this Act is liable to a fine not exceeding $5,000:

[Valuegrowth]

Even Insurance stocks are not safe. There are some risks in the insurance sector as well. In the long run only strong balance sheets firms will have sustainable business.

https://www.investopedia.com/ask/ans...nce-sector.asp

[winner69]

Harbour Asset Management ‘valuing’ CBL at 88 cents for the purpose of valuing their funds.

[Brain]

Harbour Asset Management ‘valuing’ CBL at 88 cents for the purpose of valuing their funds.

Every other punter that reads this thread and the business news has already and quite rightly written off the value of the CBL shares. This Says a lot about Harbour.

[winner69]

Every other punter that reads this thread and the business news has already and quite rightly written off the value of the CBL shares. This Says a lot about Harbour.

There rationale
https://www.harbourasset.co.nz/wp-co...te-1-March.pdf

[Brain]

There rationale
https://www.harbourasset.co.nz/wp-co...te-1-March.pdf

two words come to mind

a) blinkered
b) dishonest

[Balance]

Harbour Asset Management ‘valuing’ CBL at 88 cents for the purpose of valuing their funds.

Wonder if they will be willing to buy shares off other shareholders at a generous 50% discount - say, 44 cents?

Betcha they will offer all kind of 'rationales' why they will not - overweight, against exposure limites, rhubarb, rhubarb, hot kumara etc.

[Balance]

Every other punter that reads this thread and the business news has already and quite rightly written off the value of the CBL shares. This Says a lot about Harbour.

And they still have PEB - same deal, invest, underwrite, buy more to support the sp etc etc.