Antigua No Longer Wants Barbados’ Shares In LIAT

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LIAT ATR aircraft

Prime Minister Gaston Browne says he’s told his Barbados counterpart that Antigua & Barbuda wants to invest $40 million in LIAT and as such no longer wants to purchase Barbados’ shares in the cash-strapped carrier.

The money will come from a loan from the Venezuela Based ALBA Bank, Browne told listeners to his radio programme over the weekend.

“I have indicated to her (Mia Mottley) that the Antigua and Barbuda government has $ 40 million that could be made available to capitalise LIAT and that there should be a fresh capital call in which we will have the existing shareholders and possibly new shareholders recapitalise LIAT,” he said.

The prime minister said that this will be followed by a restructuring of LIAT to ensure that it becomes a little leaner and to ensure that it can at least make an operating profit going forward.

He said while there will have further discussions, “the idea that we will purchase Barbados’s shares that is no longer on the table.”

“We’ve taken a decision that instead of buying Barbados’ shares that we will invest directly in LIAT,” he told radio listeners.

According to Browne this would have to be approved by LIAT’s other shareholders.

He added, “I don’t see why they should stop us from investing directly in LIAT. LIAT needs the cash and I think that is a superior decision compared to buying Barbados shares.”

He said, “If Barbados does not wish to have its share position diluted, they will have the right to invest a similar amount of even more.”

“We are hoping at the next shareholders meeting they will give consideration to our request to allow Antigua and Barbuda to invest 40 million dollars.”

The prime minister said “we have already had a loan commitment from the ALBA Bank, the funds are readily available and we are in a position at this time to invest 40 million dollars in LIAT and we are determined to do so.”

He said LIAT is ” too important to the region to cease trading, it has to continue to trade.”

“If Liat were to fail the economic consequences for Antigua and Barbuda would be significant and we have to go the extra mile to ensure that LIAT survives.”

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30 COMMENTS

  1. Investing $40 million in LIAT.Did you Gaston Browne discuss this with the people of Antigua and Barbuda.There is no wonder the country is broke.Borrowing that money from another broken Nation,Venezuela.Is it because you have no intentions to repay that loan.There are persons in Antigua and Barbuda.They would get $350 EC monthly from Social Security.Today is 10/07/19 and not one copper for September in their accounts.Antigua Broke,Broke,You Bruck.

    • Did Baldwin Spencer seek the required PARLIAMENTARY APPROVAL before purchasing that POS Power Plant that the people of this country still can’t get any benefit from? Perhaps if he had, we wouldn’t be so “bruck” today as you claimed. Not to mention the money from the Can’t Park. Did spineless Lovell send you?

      • Why does everything have to be political. I am sick and tired of this bs. Antigua dont have any money, so its best we invest in indigenous activities such as public sector salaries and wages instead of liat. Isnt venezuela broke so how did he come up with the money😞

      • Hmmmmm, with comments like yours, our country will forever be broken. Do you guys even think before you talk? So let Gaston do as he wants. *facepalm.

        • No. Two “wrongs” do not make a right. But it’s a pity that I can one can see fault only in others and not themselves. And yes consultation is good, but not necessary for every situation. The Wadadli Power Can’t is a LIABILITY!!!

      • The Car Park was not a government project. And if ABLP was smart, they would hav completed it and be making money from it right now!

      • @Hmmmm:
        Why did you mention Baldwin Spencer to me.I am not a supporter of any Political Party in Antigua and Barbuda.I voted once in my life in Antigua and Barbuda,1976.Like I have indicated.There are persons in Antigua and Barbuda to this day 10/09/2019.Have not been paid their Social Security funds for September.Some as low as EC$350 per month.Social Security needs to sell those dead assets on their books at this time.Those assets are not generating any income in some instances.Like the airbase(former US Base) at Coolidge.Stop letting the Administration suck all of the surplus like pigs at the trough.Then walk away when they have sucked enough.That is Social Security today.

    • What would discussing it with the people do? Many of us are not entrepreneurial or risk takers. We like to play it safe. We don’t understand business.

      • @Dave Ray:
        I am a self made millionaire living in North America.I own my own business.I represent Valero,Amazon,TJX and HEB. So how dare you saying that many of us are not entrepreneurial or risks takers.There is where the Administration comes in.Sure up the pit falling economy.So that persons with liquid assets may invests in small businesses.So stick with your hair dressing business up there in New York.And do not try and insult us,Gaston Browne,Dave Ray.Labor Party backsides kisser.

        • Bugsy you are on point. Dave can look down his nose on Antiguans because no Spanish woman with all expenses paid by a minister opening a hair shop next to his in merica ,so he can compete on a level playing field and cast aspirations on poor antiguans

      • What is it with ALP Eagan and disparaging A tiguans. First Max say we can’t read financial statements now you say we don’t understand business.

        Antiguans understand business and can read financial statements. We play it safe (in Antigua) because we cannot compete with the members of cabinet in heavy duty equipment, garbage disposal, construction, freight forwarding or even simple retail business. Our retail business cannot compete with a cabinet member front, who imports their goods duty free. Cabinet which is privileged with inside information will bankrupt our businesses in months. The only industry Antiguans are allowed unfettered by cabinet competition is food preparation services, that’s why we keep our money in the bank where at least they can’t touch it. Ask Mr. Perry of the CTV fame about Antigua and business.

      • You think it is easy to have a decent conversation with these UPP operatives. You have to excuse them. Although I don’t agree with Michelle Obama, I have to echo what she is saying “When they go low, We go High”

    • You know we live in a Parliamentary Democracy. Which means if required the government has to go to Parliament. Not to the people. But their representatives. And since you didn’t notice that is the government. And they have the majority and they rule on our behalf with our mandate. So when you say they have to go to the people it means they have to go to themselves and publicly say why they are doing what they are doing and give themselves approval for doing so.

  2. ha haha, I knew that we would not be able to afford Barbados Shares anyway! Guess we thought the economic power house or world boss would make Barbados give us the shares for mere nothing. Lets see if the shareholders agree to the projection of 40 Mil from us. LIAT needs it!

  3. So which chunk of Antigua has now been forfeited as Venezuelan territory?.
    If the people can’t get what they are rightfully owed how can they be buying air tickets?.
    I wonder if this man had a cleaning job at the school of economics rather than a study desk?.

  4. Antiguans please wake up and understand what our esteem Prime Minister is doing. Our Prime Minister is moving our country in the right direction. You must build the ECONOMY . Our Prime Minister is a VISIONARY. Antigua and Barbuda is on the right track. Let Us support Him and stop the politics. God bless Hon. Gaston Browne.

    • What visionary?? His ‘best’ gift is that he is bareface and daring. He is also lucky that Antigua people are so ashamed of their choice that they refuse to believe what they have done so continue to believe that some ‘powerhouse’ will emerge. Tell custom workers and others who have not gotten backpay for over a year about this visionary stuff. Look, completing the car park and collecting money from it would be visionary. Utilizing Panam base for UWI snd not huffing a completed kids school would have been visionary. Not giving away all that concessions to YIDA without performance clause would be visionary. Putting us in constant debt is not

  5. Thank God we didn’t sink our money to buy out Barbados. Barbados thought we were desperate enough to do so. LIAT is the one that needs the money, therefore let us put the money in LIAT and not as a loan but as Equity. And too bad if Barbados shares and others will be water down. The company is in need of capitalization. It needs to increase its Assets base. And we need to let others in as well. Others that see the possibilities of growth in LIAT. LIAT is not just about making profit. Its about providing an essential service to the Caribbean, but especially the Leeward a Windward Islands.

    • Sideline are you dumb? Antigua Gaston boast he buying B’dos shares and where he taking Liat when he got them as if it was a done deal. Obviously he did not or could not satisfy the conditions laid out by B’dos for the sale . Its clear Antigua doesn’t have the money to put where its mouth is so he coming with different strategy . Antigua Gaston can’t trick B’dos today, tomorrow or in a million years. Seems he is a slow learner.

  6. We all know that the region is very sentimental when it comes to LIAT but borrowing under the disguise of LIAT to comfort the economic situation in Antigua is not gonna cut it, try again.

    • If you understood the economic consequences that a collapse LIAT will have on our economy you would rethink that again. Not just the jobs it supplies us but just the air traffic and the commerce that comes with it. It has a ripple effect of a factor of 10 times of every dollar spend. The same way we could not understand the effect of the closure of the Stanford Group in our Islands. Until it happened and than we felt the effects for years to come. Subcontractors, Employees salaries, Social Security, Medical Benefit, Education Levy, PIT, and many more down the line like APUA. A business that use to pay in APUA at least $500K monthly is suddenly not there. And the same goes for the Statutory corporations. LIAT will have a much bigger economic effect on our economy. And when you know that, you make sure it doesn’t happen at all cost.

      • We understood the effect of the Stanford closure. It is Alp choir members like you and the tin man who spread lies about UPP taking the economy. Look back on your caribarena posts it’s all there in black and white.

        • Stanford was just part of it. The major part was the bad stewardship by Harold Lovell. By the way they handed Stanford on a silver platter to the USA. And they where rejoicing when that happened. Not understanding that they were digging their own grave. And on top of that they cause the collapse of the ABIB indirectly by overburdening the bank with bonds that they never paid back when they matured. ABIB had to fork out the money and pay all the investor in order to safe their face. And not to mention the millions in unsecured OD that they accumulated. Which effected the banks cash flow. And rather to help the bank with cash flow they let it bleed to death. Why you think you guys had to go to the lender of last resort (IMF). Simply meant you guys failed to run the country by yourself. You needed help. If UPP were still in power we probably would by now be in a third or forth IMF program. And forced lay-off would be the order of the day. Just like Barbados. You see ABLP is creative and resourceful. You give them a problem and they will find a solution. Even 5% increase for public servants and all back pay dating back to many years ago was now addressed and the economy still growing.

          • You again fail to mention the world economic crisis that UPP and Harold Lovell presided over. Hope you realize that debtwise we are in a far worse situation. The reason we dont know it yet is ABLPs efforts to hide these things from the people. Also people like you who no longer care to see the balance sheet. I will predict that before long we will be back at IMF and at that time people like ypu will be saying what a smart and ‘visionary’ choice it is.

          • Creative? ALP been running the raid the Statutory Bodies to make up shortfall in revenue and borrow and don’t pay back game for decades. With UPP we would be on the third IMF program but you never count how much Venezuela, Chinese and CDB loans programs the ALP are on in a booming world economy. ALP is now on their 10th bailout program. You might as well go to the IMF and pay one low interest rate.
            It was SS and APUA during Lester time , now it’s ALL of them under ABLP, State insurance, Medical Benefits been added to the list. So by the time ALP done with their creative financial gymnastics not only central government will be broke but all of the related statutory bodies. And we still can’t pay pensioners.

  7. Stanford handed himself to the jailers in the US when he tried to hire a private jet to fly to Antigua and the pilot called the federal authorities and reported the matter. Stanford was ordered by the judge after his hearing not to leave the state of Texas and he found himself in Washington state running behind some girlfriend at his age. His arrogance gave him up on a silver platter. That is why after being arrested he never saw the light of day again in terms of bail. They knew he had the means to flee the country because he tried to despite his lawyer advising him not to speak to the media or leave the state of TEXAS. More ALP lies. The articles are there in black and white. Read them.
    As for the UPP giving up Stanford, would you want a fugitive of US law hiding in Antigua?
    Ask the Jamaicans how that worked out for them with Dudas Coke.

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