(CNS)
The Gaston Browne administration on Friday took a decisive legal step in pursuit of its goal to reorganize regional airline LIAT.
The government was successful in a petition in the Eastern Caribbean Supreme Court to pave the way for the appointment of an Administrator, who will be key in restructuring the airline company.
Prime Minister Browne’s nominee, Guyana-born Cleveland Seaforth of BDO, was appointed as administrator.
With Seaforth’s appointment as Administrator, a stay has been put on a creditors meeting, which had been scheduled for July 31.
The government’s case was led by senior counsel Anthony Astaphan in the Eastern Caribbean Supreme Court.
“It was a petition to begin the process of reorganization by the appointment of an Administrator and a stay on all proceedings against LIAT — civil, liquidation, proceedings by the shareholders, creditors — which would give the Administrator, who was also appointed by the court [the power] to take a deep look at LIAT and to make a recommendation one way or the other,” Astaphan explained.
“The next step would be the Administrator assuming control of the assets and management of LIAT, and to begin the exercise imposed on him by the legislation of the amendments that were made recently.
“It is a very, very important step because it gives the Prime Minister the opportunity to be able to work with the Administrator, and for the administrator to take a look at everything to be able to come to the conclusion whether LIAT 1974 Ltd, of one sort of the other, would be able to be reorganized and to be back in the sky,” Astaphan added.
LIAT was represented by lawyer Stacy Roach, who did not object to the petition or the appointment of the Administrator.
The court was clear that the stay includes the shareholders agreement to liquidate, and also the creditors meeting that was scheduled for July 31.
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“It is a very, very important step because it gives the Prime Minister the opportunity to be able to work with the Administrator” Astaphan, QC.
Seems the Administrator will not be independent.
Definition of Administrator is
” The administrator owes a statutory duty to ALL creditors. The purpose of administration is the rescue of the company as a going concern, failing which, the achievement of a better financial return for creditors AS A WHOLE than would be the case in liquidation. Only failing both of these two options is the administrator to realize assets to meet the claims of secured or preferential creditors. The company does not require to be insolvent to trigger administration. Administration lapses automatically after a year”
Not sure if current ticket holders & Liat staff are ‘preferential creditors’.
@Stay Alert
Read the article again. Astaphan is not the administrator, but the lawyer representing the government.
Thanks Read. Sorry for being confusing, to clarify:
Was quoting Astaphan.
Separately suggesting from his quote, it appears Mr. Seaforth may not be totally independent.
Liat take up over 11 million dollars from tickets holders where is this money being kept in witch bank a freeze should have put on this money to secure repayment to ticket holders 11 million is no chum change if people don’t get back they money why should they fly with liat again how could you trust that Brand again with in 90 days one Caribbean and the other airlines should have the routes lockdown
I would like to congratulate my friend Cleveland with the appointment of this most important task in the history of our air transportation. All eyes are now on him. And I’m confident that with the backing of the BDO company he will success, As their slogan is”People who know know BDO” They are not just auditors worldwide.
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