Finance Minister: Ennia asset recovery efforts advancing, damages await Mullet Bay Valuation

GREAT BAY--Minister of Finance Marinka Gumbs provided Parliament on Thursday with an update on the Ennia resolution process, including asset recovery efforts, the legal proceedings underway, and the safeguards in place to protect policyholders. The Minister explained that the Central Bank of Curaçao and St. Maarten (CBCS), acting under court-mandated emergency regulation, continues to pursue recovery and asset-protection measures aimed at securing Ennia-related assets and countering claims linked to the late majority shareholder and related parties.

Minister Gumbs said the CBCS has initiated multiple legal proceedings in the United States to recover and secure assets tied to Ennia and to defend against counterclaims. She highlighted several key developments, including:

• Texas enforcement proceedings aimed at having a Curaçao liability judgment recognized, which would allow U.S.-based assets to be pursued through collection remedies
• A Washington, DC matter in which an expropriation claim brought by related parties was dismissed, with the outcome supported by sovereign immunity principles
• A Chapter 15 recognition process in New York, which the Minister said helped secure U.S.-based assets and supported continuity in pension payments

She told Parliament that these U.S. proceedings have, to date, been progressing favorably for the CBCS, with key procedural outcomes supporting the bank’s recovery strategy.

The Minister noted that while an appeal was filed against the original liability judgment issued in Curaçao, the Joint Court of Justice has already issued a significant provisional ruling. She said the ruling upheld liability findings tied to financial mismanagement and confirmed provisional damages of at least NAf 250 million, while the final determination of damages connected to unlawful dividend payments remains linked to an independent valuation of Mullet Bay as of 2009.

According to Minister Gumbs, the valuation process is nearing completion. Once the final expert report is submitted and addressed in court, the Joint Court is expected to deliver a final judgment on the total damages owed.

Oversight, governance, and policyholder protection

Minister Gumbs emphasized that policyholder protection remains the central objective of the resolution structure. She said Ennia continues under CBCS control through the emergency regulation framework, which provided the legal basis for the bank to take over administration and restructure the company.

She outlined multiple layers of oversight, including:

• governance and supervision within the restructured entities, through professional management and supervisory boards appointed under the framework
• regulatory oversight by the CBCS as the regulator and administrator of the resolution process
• judicial oversight by the Joint Court of Justice, since the emergency regulation and major steps in the resolution remain under court supervision
• regular briefings to the governments and Parliaments of Curaçao and St. Maarten, supported by the outline agreement as a key accountability mechanism

The Minister also linked the effectiveness of oversight to governance stability at the CBCS level, stating that proper supervision depends heavily on a fully functioning Supervisory Board of Directors.

Old Ennia and New Ennia

Minister Gumbs provided Parliament with a clear distinction between the legacy structure and the restructured operating entity.

She explained that the old Ennia, under emergency regulation, holds the liabilities linked to premiums paid before July 4, 2018, and is focused on winding down legacy portfolios while pursuing claims linked to the former shareholder and related defendants.

She said the new Ennia holds liabilities accrued on or after July 4, 2018, and was established to continue active insurance operations as a stable, solvent entity. The restructuring was formalized as of January 1, 2025, with the new structure operating under Ennia Holding N.V., which owns the operating insurers within the restructured group.

The Minister said liquidation was not pursued because it would have triggered immediate and severe reductions to pensions and life insurance policies affecting roughly 30,000 policyholders across Curaçao and other jurisdictions, with major social and economic consequences.

Instead, she said the chosen approach was intended to keep active policyholders covered through a solvent insurer, while financing the legacy deficit through the long-term framework agreed under the outline agreement.

Addressing questions on Ennia’s Aruba-based entities, Minister Gumbs said strategic options are being explored in a way that protects policyholders and preserves value. She noted that the Aruba entities have historically been more solvent and operate under the supervision of the Central Bank of Aruba.

Options under consideration include a possible sale to a reputable third-party buyer, or restructuring steps to further insulate the Aruba entities from legacy liabilities. She said this work involves coordination and formal protocols between the CBCS, the Central Bank of Aruba, and the relevant group structures.

Criminal matters and confidentiality boundaries

Minister Gumbs stated that possible criminal investigations fall under the authority of the Public Prosecutor’s Office and, to her understanding, are receiving due attention. She stressed that the Ennia matter remains complex and heavily tied to ongoing civil litigation, including the court-ordered valuation process.

She also cautioned against treating reported valuation figures as final, noting that media-referenced estimates are not necessarily court-accepted valuations and do not represent the current market value of Mullet Bay.

On the total amount being claimed and what has been recovered, the Minister said the overall damages remain undetermined until the court completes the valuation-linked process and issues its final judgment. She also said no significant amounts have yet been formally collected from the liable parties, as recovery depends on the legal steps required for enforcement in the United States.

Minister Gumbs told Parliament that the outline agreement provides a sustainable solution regardless of recovery outcomes, through annual contributions to a Resolution Fund over many years to prevent any reduction in pensions. She added that successful recoveries would directly reduce the amount required from the governments and the CBCS, easing the long-term financial burden.

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