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ANTIGUA | LIAT's creditors given until August 15 to make claim

Featured ANTIGUA | LIAT's creditors given until August 15 to make claim
ST. JOHN'S, Antigua, August 7, 2020 - LIAT 1974 Ltd’s court-appointed administrator Cleveland Seaforth of the multinational accounting firm BDO, has given creditors a week from Saturday to submit their claims, holders of company property to return it and persons owing money to pay the company.

On Thursday, the Administrator issued a public notice stipulating that: “Any person, who believes that the Company holds property belonging to him/her or property in which he/she has rights, should submit his/her claim in writing to the Administrator with all supporting documents in respect of such ownership or right.

“All persons holding any property, documents, books and records of the Company are requested to deliver them forthwith to the Administrator.

“Notice is further given that all sums due to the Company should be payable to the Administrator, and receipts for such payments shall only be valid if they bear the signature of the Administrator or his duly appointed representative(s).”

According to Seaforth, anyone having a claim against LIAT, “whether liquidated, unliquidated, future or contingent”, must submit details of the debt to the Administrator no later than August 15.

Seaforth, who was appointed by the Eastern Caribbean Supreme Court on July 24, said LIAT’s business, assets and affairs are under his control, and he is an agent of the Company and acts without personal liability.

The administrator’s address has been given as Cnr. Factory Road and Carnival Gardens, P.O. Box 3109, St. John’s, Antigua.

In the meantime, Antigua’s prime minister Gaston Browne says his government will make available $2.8 million for LIAT, of which “$1.4 million will go to the [administrator] and $1.4 million will go towards paying the staff who have been working for the past month and have not received a red cent.”

Speaking on Pointe FM radio, Browne said “Antigua and Barbuda has agreed to step up and make those payments in full. And inasmuch as we are only responsible for about 36 percent of the $1.4 million, there was a previous payment that we did not participate in earlier in the year, so on that basis we have opted to pay $1.4 million.”

Browne said said this does not stop the other countries “to include Barbados,” paying their share of the monies owed to the workers.

“But we are not waiting on them to make their payment, we have decided to cover 100 per cent of the payment for the last month,” he said.

“If the administrator is unable to get the necessary cuts to make LIAT viable, then clearly it’s going to be mayhem because it means that creditors will maybe end up with nine per cent or less if they’re lucky,” the prime minister explained.

Seaforth's “main role is to see how he can reduce liabilities and operating expenses and on the basis that he’s successful in so doing, then we should be able to establish LIAT in some form, even if not at the size that it was pre-COVID, certainly a downsized and a far more efficient LIAT,” Prime Minister Browne noted.

  • Countries: Antigua_Barbuda