{"id":113867,"date":"2020-07-21T11:43:44","date_gmt":"2020-07-21T15:43:44","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=113867"},"modified":"2020-07-21T11:43:44","modified_gmt":"2020-07-21T15:43:44","slug":"skerrit-brownes-liat-plan-needs-to-be-fine-tuned","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/","title":{"rendered":"Skerrit: Browne\u2019s LIAT plan needs to be fine-tuned"},"content":{"rendered":"
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CMC-<\/strong>Prime Minister Roosevelt Skerrit Tuesday said the proposal submitted by his Antigua and Barbuda counterpart, Gaston Browne regarding the efforts to prevent the liquidation of the cash-strapped regional airline, LIAT\u201d \u00a0\u201cneeds to be further fine-tuned\u201d.<\/p>

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\u201cAs I have indicated publicly and privately, we will provide support that the Prime Minister of Antigua and Barbuda is pursuing because if it works it can certainly ensure more access, more flights coming into our country because the Antigua-Dominica connection is critical,\u201d Prime Minister Skerrit said Tuesday, following the meeting on Monday night of the major shareholder governments of LIAT.<\/p>\n

\u201cWe wait and see. Once we have more details, obviously it is an initial proposal that was submitted that has to be further fine-tuned based on the discussions last night and then I could share some of the details of that subsequently to the Dominican public.<\/p>

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\u201cBut we shall wait and see, but just to say we will support the initiative once the refined documents come back to us, but we support him,\u201d Skerrit told radio listeners here.<\/p>

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The four major shareholder governments of the Antigua-based airline are Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines. Antigua has made it clear it does not support the idea of liquidating the airline, which owed more than EC$100 million to its creditors.<\/p>\n

Browne had circulated ahead of Monday\u2019s shareholder\u2019s meeting a reorganisational plan for LIAT that proposes reinvestment of EC$108 million, with St John\u2019s indicating that under the new plan it is prepared to underwrite up to 50 per cent of the required capitalisation.<\/p>

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\u201cThe new capital invested during reorganisation will be protected, in that it will rank in priority above all other creditors in the unlikely event of liquidation,\u201d it said, noting that the remaining EC$54 million to be shared by other private and public sector entities, including existing shareholder governments.<\/p>\n

However, the Antigua plan said if the existing shareholder governments are not interested in investing in the reorganised LIAT, they will be requested to surrender their shares for EC$1, which it claims is a superior offer to what they would get in liquidation.<\/p>

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Skerrit said that Browne made a presentation to the meeting, but that both St Vincent and the Grenadines and Barbados have made it \u201cindicated their unwillingness to participate in any reorganisation of LIAT for the time being\u201d.<\/p>

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\u201cThey have given Antigua the green light to proceed with its reorganisation plan. There are a number of issues to be addressed in that process and we will wait and see,\u201d he said.<\/p>\n

Skerrit said that he has always made it clear that the aim of his administration is to get safe and reliable air transportation service for Dominicans and, in this regard, his administration has since agreed to \u201csupport all initiatives to improve and increase air travel arrangements in the Caribbean, and Dominica included\u201d.<\/p>\n

\u201cSo we will provide route licence to One Caribbean, we shall support to Inter-Caribbean in terms of route licences, we continue to work very closely with the expansion services of Air Antilles. We shall provide the licence to SVG Air . . . and we have given the green light for Caribbean Airlines to fly into Dominica as well,\u201d Skerrit said.<\/p>\n

Earlier this week, St Vincent and the Grenadines Prime Minister, Dr Ralph Gonsalves, said he had \u00a0offered to sell the island\u2019s shares in LIAT to Antigua and Barbuda for one EC dollar.<\/p>\n

\u201cI don\u2019t want to stop Antigua and Barbuda wanting to do what they want to do,\u201d said Gonsalves, who is also chair of the shareholder governments.<\/p>\n

He added that the offer includes Antigua and Barbuda paying Kingstown the value of the debt that the government guaranteed during LIAT\u2019s re-fleeting exercise, which was conducted a few years ago.<\/p>\n

\u201cThe debt which we guarantee on the three planes at the CDB [Caribbean Development Bank], let\u2019s value the planes and the amount of money which we owe the CBD on these planes, pay me that and I get out of it [LIAT] and you do what you want to do.<\/p>\n

\u201cBecause we are going to liquidate, when we liquidate, any debt we have at CDB, we are still responsible for, in respect of LIAT, but to the extent to which we had signed,\u201d he said, adding that different governments guaranteed different portions of the debt.<\/p>\n

\u201cYou want the planes, we will get the planes valued,\u201d he said, adding that he believes the aircraft might be valued around US$10 million each.<\/p>\n

\u201cLIAT has served St Vincent and the Grenadines pretty well. We have had different times, 42, 49 flights a week, sometimes more than that, and we collect a lot of taxes because of the number of people who went on LIAT and so on and so forth.<\/p>\n

\u201cI am prepared, even the money which LIAT owes the Vincentian government for fees and some taxes and so, I am prepared to write that off because I can\u2019t get it back in any case in liquidation. LIAT doesn\u2019t have any assets,\u201d Gonsalves said.<\/p>\n

The St Vincent prime minister also said that he had told Browne from the beginning that he does not want to do anything to stop Antigua from doing what they want to do, regarding LIAT.<\/p>\n

Skerrit told radio listeners on Tuesday that his administration is also pushing ahead with plans for the construction of an international airport and is hoping to start the geo-technical studies as early as September.<\/p>\n

He said the studies could have been done earlier had it not been for the coronavirus (COVID-19) pandemic that prevented the officials from China arriving here.<\/p>\n

\u201cWe have placed the international airport as priority number one . . . and I am redirecting a lot of state resources . . . to the project,\u201d he said, hoping that payment will be made to farmers \u201cas early as next week\u201d for their crops that would be destroyed during the exercise.<\/p>\n

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CMC-Prime Minister Roosevelt Skerrit Tuesday said the proposal submitted by his Antigua and Barbuda counterpart, Gaston Browne regarding the efforts to prevent the liquidation of the cash-strapped regional airline, LIAT\u201d \u00a0\u201cneeds to be further fine-tuned\u201d. \u201cAs I have indicated publicly and privately, we will provide support that the Prime Minister of Antigua and Barbuda is […]<\/p>\n","protected":false},"author":3,"featured_media":113797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-113867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nSkerrit: Browne\u2019s LIAT plan needs to be fine-tuned - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Skerrit: Browne\u2019s LIAT plan needs to be fine-tuned\" \/>\n<meta property=\"og:description\" content=\"CMC-Prime Minister Roosevelt Skerrit Tuesday said the proposal submitted by his Antigua and Barbuda counterpart, Gaston Browne regarding the efforts to prevent the liquidation of the cash-strapped regional airline, LIAT\u201d \u00a0\u201cneeds to be further fine-tuned\u201d. \u201cAs I have indicated publicly and privately, we will provide support that the Prime Minister of Antigua and Barbuda is […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/\" \/>\n<meta property=\"og:site_name\" content=\"Antigua News Room\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/antiguanewsroom\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-21T15:43:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mlavawteztbj.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2020\/07\/Skerrit.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1366\" \/>\n\t<meta property=\"og:image:height\" content=\"768\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@AntiguaNewsRoom\" \/>\n<meta name=\"twitter:site\" content=\"@AntiguaNewsRoom\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/\"},\"author\":{\"name\":\"Editor\",\"@id\":\"https:\/\/antiguanewsroom.com\/#\/schema\/person\/36cac05ef6398fe56ae3e6317f8535c5\"},\"headline\":\"Skerrit: Browne\u2019s LIAT plan needs to be fine-tuned\",\"datePublished\":\"2020-07-21T15:43:44+00:00\",\"dateModified\":\"2020-07-21T15:43:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/\"},\"wordCount\":989,\"commentCount\":6,\"publisher\":{\"@id\":\"https:\/\/antiguanewsroom.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/mlavawteztbj.i.optimole.com\/w:1366\/h:768\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2020\/07\/Skerrit.jpg\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/\",\"url\":\"https:\/\/antiguanewsroom.com\/skerrit-brownes-liat-plan-needs-to-be-fine-tuned\/\",\"name\":\"Skerrit: Browne\u2019s LIAT plan needs to be fine-tuned - 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