THURSDAY, OCTOBER 13, 2016
business@tribunemedia.net
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Sarkis submits last ditch Baha Mar bid By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Sarkis Izmirlian yesterday made a last-ditch intervention to regain ownership of the $3.5 billion Baha Mar project, offering to acquire the property for a price “in excess” of what both its secured creditor and ultimate purchaser will pay. Baha Mar’s original developer, unveiling an October 10 letter he sent to the China Export-Import Bank, has submitted another purchase offer that was branded as “superior economically” to all rivals, “and in the best interest of the Bahamas”. The letter, which was copied to Prime Minister Perry Christie, also took a swipe at the ‘double standards’ with which Mr Izmirlian alleges he has been treated. Couched in diplomatic language, the document said it was “very surprising” that the proposed Baha Mar purchaser had been discovered outside the formal sales process operated by the project’s receivers, the Deloitte & Touche accounting firm. Mr Izmirlian, and his BMD Holdings vehicle, argued that they were informed “multiple” times that their offers would only be entertained if submitted through the receivers’ process, yet they - and the China Export-
baha mar development site
Offers to pay ‘in excess’ of bank’s SPV, buyer Slams ‘double standards’ treatment of his offers China likely to view 11th hour move as ‘publicity stunt’
Import Bank, as their employer - appeared to have performed a complete ‘u-turn’ on this condition. Mr Izmirlian, in his letter to the China Export-Import Bank’s vicechairman, Liu Lange, said that the ultimate Baha Mar purchaser had been “found outside the receivers’ process”. “This is very important and surprising,” he wrote. “As you must be aware, we previously were advised on multiple occasions by your receivers See pg b4
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Banks told: Show ‘flexibility’ over lending relaxation By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Chamber’s chief executive yesterday backed the Central Bank’s move to relax its lending guidelines so storm-ravaged businesses and homeowners could finance restoration, emphasising: “We need to have capital flowing.” The regulator, in a statement, informed commercial banks that it was relaxing both borrower debt servicing ratios and equity contributions to better facilitate access to much-needed credit in Matthew’s aftermath. The 15 per cent equity (downpayment) contribution that the Central Bank recommends all borrowers make, prior to receiving a loan, is being waived entirely for an undefined period. And the maximum debt service ratio recommended by the Central Bank is being increased by at least 10 percentage points - from 4045 per cent to 55 per cent. “In the aftermath of the See pg b4
Central Bank waives 15% borrower downpayment And increases debt service ratio advice to 55% Chamber chief: ‘We need capital flowing’ after storm
Edison Sumner
‘Support Bahamian’
Auto dealer supports storm fraud safeguard
Hurricane exposes BPL manager’s ‘inexperience’ in our hour of need
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
An auto dealer yesterday backed the Government’s safeguards for Hurricane Matthew automobile replacements, suggesting it would reduce the fraud and exploitation seen under previous ‘exigency Orders’. Rick Lowe, Nassau Motor Company’s (NMC) director/operations manager, told Tribune Business that the absence of such controls previously had enabled persons to “replace an old piece of junk with a brand new vehicle”. The new Matthew ‘exigency Order’, which will initially take effect for 180 days (six months) from October 7, 2016, says Customs Duty and Value-Added Tax (VAT) exemptions on autos imported to replace vehicles claimed by Hurricane Matthew will be based on ‘the market value of the vehicle destroyed on the date of the hurricane’. “In the event the minimum value is less than $5,000 on the date of the
Tax breaks exploited prior in ‘junk for new car swap’ Fears ‘bureaucratic frustration’ for claimants Queries NEMA ability to verify all submitted claims hurricane, a value of $5,000 would be used. The destroyed vehicle must be turned over to the authority of the Customs Department in all instances,” the Government said. Mr Lowe said these protocols were “the proper thing to do”, explaining that they would act as a safeguard against persons seeking to exploit Matthew’s devastation for personal gain and enrich themselves. “Before, what was happening was that people who had an old piece of junk, See pg b4
Hurricane Matthew has exposed the “inexperience” of Bahamas Power & Light’s (BPL) management company in dealing with the aftermath of storms, a former Cabinet minister argued yesterday. Phenton Neymour, who had ministerial responsibility for the then-Bahamas See pg b5
PowerSecure ‘buffers Govt from public outcry’ Ex-minister: Administration equally to blame Neymour: BEC resisted customer call centre
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Consumers and businesses were yesterday urged by a senior Chamber executive “to support what is Bahamian” by shopping at home for the majority of hurricane relief and restoration supplies, so as to get the economy “back on the right footing”. Edison Sumner, the Chamber’s chief executive, See pg b5
Chamber boss wants most relief shopping at home Will ‘spur economy back on right footing’ Negotiating further incentives for small business