est. 2007

Barbados Underground

Bringing News and Opinions to the People

Was It A Misprint?

LIAT’s more than EC$300 million (BDS$225.3 million) debt has been erased from its books and the airline could be on the verge of a profit. This story was carried in the Barbados Business Authority 14th January 2008. The article went on ‘In praising the board’s tremendous feat, Holder said that at the end of 2007,…

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LIAT’s more than EC$300 million (BDS$225.3 million) debt has been erased from its books and the airline could be on the verge of a profit.

This story was carried in the Barbados Business Authority 14th January 2008. The article went on ‘In praising the board’s tremendous feat, Holder said that at the end of 2007, the board had presented an airline that was completely debt-free’.

‘Completely debt-free’!

Does this include ‘the US$60 million (BDS$120 million) loan package from the Caribbean Development Bank, that was reported in the Nation on 29th July 2007?

I really think that Dr. Jean Holder (the Chairman) and Mark Darby (the CEO) of LIAT need to clarify this to the taxpaying Caribbean people.

Adrian Loveridge

14th January 2008

6 responses to “Was It A Misprint?”

  1. David Avatar
    David

    Have we not seen this old fashion approach to how we have restructured public entities in the past? Let us come home and use Hotel Resorts limited as a classic case. What our tertiary trained leaders seem adept at doing over the years is to use debt as a solution to our problems. We continue to mortgage the future of generations to come. We need new ideas that will find new ways of doing things.

  2. EVE Avatar
    EVE

    My question:

    How is it that Caribbean Star was operating with fares in some cases less than half of what LIAT is now charging………….what really caused Caribbean Star to merge with LIAT???

  3. degap Avatar
    degap

    “Is town say so”

    Yes completely debt free! Why should this be a surprise to anyone? Management got their marching orders from LIAT’s stockholders, and they have followed thru, so while muckrakers and other assorted LIAT haters have persisted with their propaganda campaign against LIAT, Dr. Holder et al may actually have the regional airline on a sound financial footing. You’ve got to love life’s little ironies. As for Caribbean Star, not even a billionaire like Stanford could continue to subsidize the idiotic below market prices charged by Caribbean Star. Money doesn’t grow on trees.

  4. anon Avatar
    anon

    degap Liat may or may not be on a sound financial footing but daily Caribbean countries it serves are crying foul on its fares and service. Liat is headed for choppy waters. Its losing support from the very islands who pay its exorbitant monopolistic fares. Why is Owen and foolie the fifth MM Lynch against a ferry service?

  5. anon Avatar
    anon

    this could only be achieved if the government’s converted their debt into equity

  6. Debt Avatar
    Debt

    anon you are right that if the debt is converted to equity LIAT’s losses will disappear. Unfortunately the debt does not disappear from the donor countries.

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