Browne Seeks CDB Loan To Buy Two LIAT Planes

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Prime Minister Gaston Browne is trying to avoid a possible road block in the reorganization of LIAT by obtaining a loan from the Caribbean Development Bank to purchase two LIAT ATR Planes.

“The Prime Minister of Barbados Mia Mottley and Prime Minister [Ralph] Gonsalves [of St. Vincent and the Grenadines], they would have written to the Caribbean Development Bank requesting that they sell the three planes and to apply the proceeds, on a proportional basis, in reducing their re-fleeting loan with the Caribbean Development Bank,” Prime Minister Browne told Pointe FM yesterday.

He said that plan is now faced with a bit of difficulty.

“But Caribbean Development Bank has indicated that in order for them to do that, they will have to call the re-fleeting loan; and because there are certain cross guarantees as well, it means that the other LIAT loans as well, they will be in cross default and they would have to call those.”

“In the case of Antigua and Barbuda, it  would mean that we would have to find about US$25 million, which clearly we don’t have,” Browne said.

“We have since written to the Caribbean Development Bank to ask them if they could look at the possibility of extending a certain amount of money to Antigua and Barbuda so that we can payout St Vincent and the Grenadines and Barbados for the two planes that they would have owned out of the three.

“So, they will get back to us. I’m not too sure if they have the appetite for that but at least we’re trying to see if we can step up with some additional borrowings and to try and resolve the issue amicably,” Browne added.

 

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14 COMMENTS

  1. I don’t think reorganization of LIAT is the Biggest problem I’m thinking it’s reorganization with Browne in charge and headquartered in Antigua is the problem not saying that Antigua and Barbuda can’t play a major role in LIAT but not to be headquartered there my thinking is if Browne want LIAT to fly again come up with another plan with LIAT based somewhere else or is he going with LIAT based in Antigua
    OR No LIAT at all and if that’s his final solution sad to say R I P LIAT.

  2. I want to see LIAT survive but more and more this looks like a herculean task. Like my friend Caudley Joseph I am waiting to fly LIAT within the next 60 to 90 days, however, unlike him I am not too optimistic. Perhaps he believes more in the ability of the Top Dawg than I do.

    • Why not come with some constructive ideas if you mean well to LIAT. Other than that it’s like you sit on the sideline waiting to see if he would fail to be saying, well I told you so. Because you know you have seen Browne perform in very difficult circumstances and come up with things outside the box. But as you can see, Barbados and St. Vincent always have some more tricks up their sleeves to put obstacles in his ways. These fights are not easy. But we will do what we have to do and that is pray for wisdom for our PM to beat them in their game

      • Always blaming SVG & Barbados, did they agree to sell the shares to the Gov’t of Antigua? Don’t look to blame any other Gov’t the ball is in your court. LIAT was like most of us living from Paycheque to Paycheque. COVID has shown the viability of the model is not sustainable through this pandemic. LIAT never made a profit for the Antigua ppl so why hold on to something that is just taking money from you. And also what has me so confused about this, is that there is more competition in the northern Caribbean than in the south where LIAT was making more money, why was LIAT still in Antigua, why was LIAT sending empty planes to Barbados to facilitate routes that are based in Barbados, why not have half the planes in Barbados. Antigua is not even viable money-making route for LIAT… this whole thing is crazy. No Commonsense just Politics.

        • It’s not about blaming them, just judging them by their actions. Why try to sell the planes that LIAT need to operate just to reduce your liability. The shares are not worth a dime today, but will eventually if LIAT gets back on its feet. And if it does it will not be thanks to them. And they know it. They will look very bad when that time comes around.

  3. Lord have mercy more dent for Antigua again. GASTON PLEASE JACK
    SAVE WHATS LEFT OF THIS COUNTRY JACK … U AND FAMILY GOT
    ENOUGH MONEY FROM ANTGUA
    PLEASE NO MORE JACK

  4. He has enough money to buy one and G-Money can buy the other! Done deal….show them u can do it without another loan on tax payers back!

    Did u chk IMF? Or World Bank? 🤣🤣🤣

  5. Let sleeping business die. LIAT is dead and can never be resurrected! The plan sounds good on paper but lack finance and management. Same latrine….different people crapping in it.

  6. Mr. Brown wants to reorganize LIAT and he has no money to buy planes? Mr. Brown should speak to the mission impossible team. Perhaps taking over LIAT’S debt at CDB could make some sense seeing that Antigua with the shares from Barbados and St.Vincent will own over eighty percent of a no value LIAT.

  7. Daunting task indeed. However, we must always remain hopeful and optimistic. Never say never.

    I’d rather tat and fail, than to to fail to try.

    LIAT will fly again.

    • @Gaston Browne,you say, LIAT would fly again.I do believe that but for how long.That is the $50 million question.

  8. Sounds like too much of an ask. Looks like if the planes are sold any loss will be borne by the current share holders. Brown is asking for a loan to pay off the other holders to free him up to get another loan to buy planes. Plus it looks like there is more competition coming into the market.

  9. Pause a moment.
    WHO advising be ready for a lengthy C-19 pandemic over years not months.
    Govt. Revenues will not be as they were in 2019 for many a year.
    Civil service needs reducing, severance paying, in addition to the monthly contributions + pay to retained staff, working to & being assessed on performance targets.
    All residents need:
    Running water consistently to all homes.
    Uninterrupted consistent level electricity to all homes.
    Uninterrupted HIGH SPEED internet to all homes.
    All above without Antiguans being gouged on price.
    Education, Healthcare, Roads, Law & Order, Agriculture, Gender Affairs, Next Generation Business & Tourism.
    Providing these will be very challenging for any government over the next 5+ years, let alone debt ridden Antigua.
    There will come a point where the regional & global lenders say no because the money won’t be available.

    So, please explain why on earth Antigua is going full force into the airline business when Antigua’s other current financial obligations are possibly not being met?
    The airline business is rapidly shrinking globally with many carriers teetering on the edge & seeking second bailouts from big countries and giving up hundreds of aircraft by mothballing them because there’s no market for the used planes currently.

    Is it time for Antiguans to see audited accounts for government, year on year, to fully understand the debt hole the nation is in and on what money is spent?

    Btw on rereading the statement, Bim/SVG are doing nothing more than they agreed with PM Browne recently. The new information appears to come from CDB or Liat CFO, revealing how loans to Liat are linked to each other, hence ‘adjust one, adjust all’, which is a tough reality for the now majority shareholder Antigua; that ec$2 deal may not have been so sweet ehh?

  10. Mr Brown, why don’t you tell Antiguans and Barbudans why you really want to buy LIAT? Why don’t you tell Antiguans and Barbudans what you will do with the airline when you get it.
    Do Antiguans and Barbudans know the real reason why you wanted to get a Scotiabank, Digicel, Royal Bank. Come on, you know it has nothing at all to do with us and making our lives better. It is all part of your plans for becoming a superpower leader in the West, and the first billionaire in these parts, isn’t it?
    You have absolutely no interest in the people and their sufferings, their poor conditions. You don’t have one ounce of feeling in you for what they are going through. All you want is what you want for yourself and your family. To hell with the people.
    Come on, Mr Browne, tell the people the REAL reason why you want to get these businesses so badly. Some of us know, but we want to hear you say it. For once, be honest.
    Why do you want LIAT so bad that you are prepared to push us one side?
    WHY DO YOU WANT LIAT SO BAD?

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