Caribbean News Service (CNS) — The Gaston Browne administration on Friday took a decisive legal step in pursuit of its goal to reorganize regional airline LIAT.
The government was successful in a petition in the Eastern Caribbean Supreme Court to pave the way for the appointment of an Administrator, who will be key in restructuring the airline company.
Prime Minister Browne’s nominee, Guyana-born Cleveland Seaforth of BDO, was appointed as administrator.
With Seaforth’s appointment as Administrator, a stay has been put on a creditors meeting, which had been scheduled for July 31.
The government’s case was led by senior counsel Anthony Astaphan in the Eastern Caribbean Supreme Court.
“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 explained.
“The next step would be the Administrator assuming control of the assets and management of LIAT, and to begin the exercise imposed on him by the legislation of the amendments that were made recently.
“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 be reorganized and to be back in the sky,” Astaphan added.
LIAT was represented by lawyer Stacy Roach, who did not object to the petition or the appointment of the Administrator.
The court was clear that the stay includes the shareholders agreement to liquidate, and also the creditors meeting that was scheduled for July 31.