The efforts of Prime Minister Gaston Browne, toward the reorganization of LIAT, advanced further Friday with a successful petition in the Eastern Caribbean Supreme Court.
The petition was for the appointment of an Administrator, who would be charged with taking the lead in restructuring the regional carrier.
Cleveland Seaforth of BDO (an international network of public accounting advisory firms), was the Prime Minister’s nominee – and his appointment led to a stay being granted on the LIAT creditors meeting, which was scheduled for July 31.
Senior Counsel, Anthony Astaphan, led the government’s case in the court and shared with Observer what these developments mean for LIAT.
“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 said.
The next step would be the Administrator assuming control of the assets and management of LIAT.
“Then they would have to begin the exercise imposed on him by the legislation of the amendments that were made [in the Antigua and Barbuda parliament] recently,” Astaphan explained.
He said the big takeaway from this decision, should be that LIAT is no longer under immediate threat of liquidation.
“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 reorganize and to be back in the sky,” he said.
The court made it clear that the stay extends to both the creditors meeting, as well as the shareholder’s agreement to liquidate the company.
LIAT was represented in the court by Attorney, Stacy Roach, who did not object to the petition or the appointment of the Administrator.
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Liat will never change, non educated people do not know how to run a airline.let it go underground.
I’m wondering, how is it that the Supreme Court of the East Caribbean can sit and give an decision in the LIAT reorganization matter so quickly, yet when it comes to other matters, including the challenge to elections, the court and it’s officers take so damn long? It’s said that justice delayed is justice denied, and the officers of the court know that, therefore, they should have some explaining to do why they treat election matters with such a snail’s pace when it’s the will of the people that’s at stake. I smell a rotten fish and wish the court would explain to laypeople like me what’s going on. No wonder there is not much faith in the judiciary in the subregion.
I don’t trust the two a International Bandits from Dominica and Antigua. Who knows the Administrator nominated by one of theses Bandits might be one of their own in the Illuminati.
So when all is done it will be business as usual and the poor tax payers may have to subsidize LIAT and will still charge us highly tax based fare on travel tickets
I think that this is an important decision in light of the critical role that LIAT has played and will continue to play in regional air travel once it can be ascertained that the airline future as a regional carrier can be sustainably operated going forward.
I call on all the people of the Eastern Caribbean in general and the people of Dominica in particular, and including the government and opposition to support any and every legal move to save LIAT from collapse especially since the airline plays such an important role in travel to and from Dominica.
I support the reorganization of LIAT and not the outright shut down of operations since LIAT is so critically important to regional and international air travel to and from Dominica
My concern is with the current crop of employees and their union. As part of the reorganization plan, workers are to be given shares in lieu of money owed to them. That means they are going to be in a position to hold the new company and it’s management to ransom like they did the old LIAT. As a result in a short period of time, the new version of LIAT will be back to where we are now. If it can be negotiated that no contracts will be given to workers and no union will be allowed, then I see hope for the future and the new endeavor. I have worked for over 20 years in the US without any union and without any contract, and never once have I felt insecure about my job.
Real nice. A step in the right direction. I applaud Mr. Browne on his stance and standing firm on what he believes in. Everyone will benefit from this. Competition in regional travel will significantly lower air fares and caribbean nationals will be able to breathe better. I’m loving this.