PM Browne says the initial valuation method for LIAT 2020 was flawed

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LIAT 2020 photo by Wayne Mariette via Facebook

Prime Minister Questions Valuation in LIAT 2020 Deal

Prime Minister Gaston Browne has voiced serious concerns about the valuation methodology used in the LIAT 2020 partnership between Air Peace and the Government of Antigua and Barbuda.

He suggested that Antigua and Barbuda might ultimately hold a majority stake in the restructured airline.

Currently, the valuation assigns Air Peace Caribbean a 70 percent ownership stake, leaving the government with 30 percent. Browne, however, contends that the valuation overestimates Air Peace’s contributions, specifically the two aircraft provided.

“The planes are probably worth about $5 million each,” Browne said, “but the valuation team valued them based on projected cash flows for ten years down the road, inflating their worth far beyond market value. I told them, ‘What kind of madness is that? Value the assets at market price—if it’s $5 million, then it’s $5 million.’”

Browne also highlighted the old Goddard building at the airport, which the government allocated to LIAT2020 for operational use, as a significant asset that he believes holds more value than the Air Peace planes.

“We’ve provided a building for LIAT that alone likely holds a higher market value than the two planes Air Peace has put in so far,” he stated.

The Prime Minister also voiced his concerns over the leasehold values in the new LIAT entity, emphasizing the need for tangible ownership.

“So if LIAT 2020 doesn’t own assets, what happens if things go bad? What happens to the staff and the airline’s future? We can’t leave them with nothing,” he added, stressing that proper valuation would protect LIAT 2020 employees and the government’s stake.

In addressing the risk associated with land contributions, Browne noted, “They told me that by putting land on a freehold basis, we may lose it. I said, ‘Are you going to protect the government and expose the staff?’”

He insisted on market-based revaluation, expressing confidence that it would ultimately place Antigua and Barbuda in the position of majority ownership.

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11 COMMENTS

  1. I just have 1 question PM Browne.
    What happen to the LIAT(1974) former employees? Air Peace was just taking a page from your book.

  2. @#LifeHard. Where do you live? Not in Antigua and Barbuda. The government has offered the staff a settlement amount equal to its share ownwrship in liat. Now put that question to the employees’ union.

  3. Awwwww, it sounds like Gaston Browne and his wotless team didn’t do their due diligence again. Awwww …

    The reactionary has lost the plot once more.

    ONE DAY HE’LL GET SOMETHING RIGHT!!!

  4. 🥱🥱🥱🥱🥱🥱🥱🥱🥱🥱🥱🥱🥱
    ah marning yet? Me sleep gud las nite!
    “Grannie ah wah de CHATTER BOX an dem, ah say dis marning?”
    Grannie, “sum ah dem ah say, dat sum Nigerians scam aff Gaston, Chet and Davin wid LIAT 2020 deal.”
    🥱, “dem say dat, sum Nigerians rank high, pan de SCAM SCALE.”

  5. Since the PM is publicly stating his displeasure with the LIAT 2020 & Air Peace deal(s), then the People’s Representatives in the Parliament MUST be required to reopen the ANTIGUA AIRWAYS COLD CASE, and marry it to what the PM is alluding to.

    The young politician Gaston Browne, twenty-five years ago, as he was rising up in ALP would be on the PICKING LINE, and not letting it simply run, a few days in the Media.

    #DO_WORK PRINGLE & Co.

    Gaston Browne, PM smells, feels, taste, hears [probably] knows something is COMING SOON to funky_up this LIAT2020 deal and he’s throwing his #SCAMED_GOONS under the bus.

    #Chet where is #Davin?

    Ras Smood aka Jumbee_Picknee
    De’Ole Dutty Peg🦉Garrat_Bastard

    Vere C. Edwards

  6. No more flowery words about LIAT 2020, this is the beginning of the scam revelation. Remember Browne knew about Air Peace many problems, so what is he now crying about. Air peace might fly away with their 5 million planes…

  7. The initial evaluation was not flawed. It is a fraudulent deal period.
    LIAT 2020 is the Gaston Brown signature deal and now we are being told it is flawed.
    Gaston Browne is and has always taken Antiguans as fools.
    I have commented numerous times that this deal makes no sense and thst the Air Peace is holding 40% of LIAT 2020 ownership on behalf of others.
    More to come

  8. It’s funny how he now want to take the workers interest at heart and talk about assents and taking care of them if it goes bust??? Well buddy it already did go bust and you have stated that you don’t owe the workers a cent, but being a compassionate government you will pay then scraps of their severance? You and your team will go to hell! LIAT20 will go to hell if you do not pay they past workers.. HOW DARE YOU carry liat20 on their backs and offer then a fraction of what is due to them? HOW DARE YOU???!!! PAY THEM IN FULL OF FAIL, this is the hex I put on you…

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