Barbados, St. Vincent & the Grenadines to sell LIAT shares to Antigua & Barbuda

The Barbados and St. Vincent & the Grenadines governments have agreed to sell their shares in the cash-strapped regional airline, Leeward Islands Air Transport (LIAT), to accommodate a new re-organizational plan outlined by Antigua & Barbuda.

Antigua & Barbuda Prime Minister Gaston Browne, in an interview with the Caribbean Media Corporation (CMC) following Monday night’s shareholders meeting, also announced that an agreement had been reached to sell 3 of the aircrafts that had been acquired with funds provided by the Barbados-based Caribbean Development Bank (CDB).

The other major shareholder government of the Antigua-based airline is Dominica.

“The real substance of the meeting is that we have agreed to sell the 3 planes that are owned by LIAT and charged to the Caribbean Development Bank, the loans which were actually guaranteed by the shareholder governments,” Browne told reporters.

He said the proceeds from the sale would be “utilized to repay or to reduce the outstanding debt.”

“There was also a decision that St Vincent & the Grenadines and Barbados will turn over their shares in LIAT to Antigua & Barbuda for one EC dollar (US$ 0.37) each. In addition, Antigua & Barbuda will move immediately to appoint the administrator and the administrator will meet with creditors to include the staff to put a plan in place to repay them.

This re-organisation obviously will include a significant haircut to all creditors including the staff and the outstanding severance, salaries and wages and in addition the government of Antigua & Barbuda will work along with the administrator to raise additional capital so that the new reorganised LIAT (1974) Limited would have the capacity to operate on a sustainable and profitable basis,” Browne told reporters. -(CMC)