THURSDAY, JUNE 23, 2016
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BPL âhands tiedâ for 1218 months By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS POWER & Lightâs (BPL) âhands are going to be tiedâ for a further 12-18 months until its $600 million legacy debts are refinanced, a former BEC executive chairman warned yesterday. Michael Moss, who held the post until May 2012, told Tribune Business that the Government could have prevented New Providenceâs current outage crisis, and lowered electricity bills even further, had it followed through on the generation expansion plans left in place by the Board he headed. And he questioned the effectiveness of the BPL management agreement with PowerSecure, given that it had already failed to take âthe first stepâ following the Governmentâs rejection of its proposed base rate increase. See PG B7
Ex-chair: Rate rise needed for investor confidence Says Govtâs failure to act on plan left causing outages Questions whether management model can work
A FUND administratorâs bid to overturn a Securities Commission fine has been rejected by the Court of Appeal, which yesterday found the case raised no legal issues that could impact the wider Bahamian financial services industry. Fund Haven Ltd, the former Accuvest Fund Services, had sought to appeal âout of timeâ a 2012 Supreme Court verdict against itself and its client, South American Investment Fund Ltd, which upheld an earlier Securities Commission disciplinary decision and
THE Prime Minister yesterday said the Bahamas âtakes full ownershipâ of its economic competitiveness decline, as he defended the Governmentâs decision to shrink the Value-Added Tax (VAT) payment âwindowâ. Perry Christie told the House of Assembly that the narrowing of the VAT payment and filing timeframe, from 28 days to 21 days after period end, was designed to bring the Bahamas into line with most other nations. âThey state that, in accelerating the VAT filing period to 21 days after monthend, we fail to appreciate how businesses work. That is untrue,â Mr Christie said.
SARKIS Izmirlian âstood no chanceâ of raising the $600 million-plus financing necessary to complete the Baha Mar project and carry it through to a âbreak evenâ position, the Governmentâs foreign legal advisers have concluded. Separate analyses by Hogan Lovells, the US law firm, and London-based Charles Russell Speechlys,
MICHAEL MOSS
Securities Commission fine overturn bid rejected Appeal Court: No wider issue for financial sector Fund Haven not allowed to appeal âout of timeâ fine against them. Appeal Justice CraneScott, in her ruling, See PG B14
Says quicker VAT payment ânot unreasonableâ Pledges more rapid electricity connections And to improve service by Govt departments âIn fact, if one takes the time to examine general VAT practice around the world, it will be obvious that a 21-day filing period is not unreasonable. âSuch a filing period is found in Barbados, with See PG B6
argue that the evidence shows Mr Izmirlianâs proposed Chapter 11 restructuring plan was ânothing more than a pretenceâ given that he did not produce any proof of financing. The two law firms poured scorn and derision on the Baha Mar developerâs decision to seek Chapter 11 protection in the Delaware courts, with Hogan Lovellsâ memorandum describing his restructuring plan for he $3.5 billion project as ânothing more than a hypo-
thetical constructâ. Charles Russell Speechlys went further, arguing that Mr Izmirlianâs Chapter 11 filing was ânot so much a credible restructuring plan that would safeguard the futureâ of Baha Mar, but an initiative to ensure he remained in control of the $3.5 billion development. Instead, both law firms argue that the Chapter 11 filing was âa tacticâ to both strengthen Mr Izmirlianâs See PG B13
Govt advisers: âNo evidenceâ of Baha Mar finance Brand Chapter 11 as âa pretenceâ and bargain tactic Govt responds to heat over China relationship
Two bidders reach Baha Mar shortlist Tribune Business Reporter
PM takes âfull ownershipâ of business ease slippage By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor and NATARIO McKENZIE
Financial provider âput cart before the horseâ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
âNo chanceâ Sarkis could raise $600m
BAHA Marâs receivers have shortlisted two groups, one with a Bahamian investor connection, as potential âpreferred biddersâ for the $3.5 billion development, the Prime Minister said yesterday. Perry Christie, in closing the 2016-2017 Budget debate, said the China Export-Bank, Baha Marâs $2.5 billion secured creditor, had yet to select either of those recommended by Deloitte & Touche as the âpreferred bidderâ for the property. Referring to the âinvest-
PM: One has âBahamian investor connectionâ Govât advisers feared âcreditor cram downâ âPerverse outcomeâ to let Chapter 11 proceed ment incentivesâ that the Chinese are said to have demanded from the Government, Mr Christie said:
âThe Opposition has raised the question regarding concessions which the Government is being asked to consider in relation to the completion of the Baha Mar project. âThis is a matter which will require negotiations, primarily with the new investor in this project, who is yet to be decided upon by the China Export-Import Bank. âThe current position, as I understand it, is that two firms have been shortlisted. One of them has a Bahamian investor connection.â Mr Christie did not identify the two groups or the âBahamian investor See PG B11
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