THURSDAY, JUNE 23, 2016
business@tribunemedia.net
BPL ‘hands tied’ for 1218 months By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS POWER & Light’s (BPL) “hands are going to be tied” for a further 12-18 months until its $600 million legacy debts are refinanced, a former BEC executive chairman warned yesterday. Michael Moss, who held the post until May 2012, told Tribune Business that the Government could have prevented New Providence’s current outage crisis, and lowered electricity bills even further, had it followed through on the generation expansion plans left in place by the Board he headed. And he questioned the effectiveness of the BPL management agreement with PowerSecure, given that it had already failed to take “the first step” following the Government’s rejection of its proposed base rate increase. See PG B7
Ex-chair: Rate rise needed for investor confidence Says Govt’s failure to act on plan left causing outages Questions whether management model can work
A FUND administrator’s bid to overturn a Securities Commission fine has been rejected by the Court of Appeal, which yesterday found the case raised no legal issues that could impact the wider Bahamian financial services industry. Fund Haven Ltd, the former Accuvest Fund Services, had sought to appeal ‘out of time’ a 2012 Supreme Court verdict against itself and its client, South American Investment Fund Ltd, which upheld an earlier Securities Commission disciplinary decision and
THE Prime Minister yesterday said the Bahamas “takes full ownership” of its economic competitiveness decline, as he defended the Government’s decision to shrink the Value-Added Tax (VAT) payment ‘window’. Perry Christie told the House of Assembly that the narrowing of the VAT payment and filing timeframe, from 28 days to 21 days after period end, was designed to bring the Bahamas into line with most other nations. “They state that, in accelerating the VAT filing period to 21 days after monthend, we fail to appreciate how businesses work. That is untrue,” Mr Christie said.
SARKIS Izmirlian “stood no chance” of raising the $600 million-plus financing necessary to complete the Baha Mar project and carry it through to a “break even” position, the Government’s foreign legal advisers have concluded. Separate analyses by Hogan Lovells, the US law firm, and London-based Charles Russell Speechlys,
MICHAEL MOSS
Securities Commission fine overturn bid rejected Appeal Court: No wider issue for financial sector Fund Haven not allowed to appeal ‘out of time’ fine against them. Appeal Justice CraneScott, in her ruling, See PG B14
Says quicker VAT payment ‘not unreasonable’ Pledges more rapid electricity connections And to improve service by Govt departments “In fact, if one takes the time to examine general VAT practice around the world, it will be obvious that a 21-day filing period is not unreasonable. “Such a filing period is found in Barbados, with See PG B6
argue that the evidence shows Mr Izmirlian’s proposed Chapter 11 restructuring plan was “nothing more than a pretence” given that he did not produce any proof of financing. The two law firms poured scorn and derision on the Baha Mar developer’s decision to seek Chapter 11 protection in the Delaware courts, with Hogan Lovells’ memorandum describing his restructuring plan for he $3.5 billion project as “nothing more than a hypo-
thetical construct”. Charles Russell Speechlys went further, arguing that Mr Izmirlian’s Chapter 11 filing was “not so much a credible restructuring plan that would safeguard the future” of Baha Mar, but an initiative to ensure he remained in control of the $3.5 billion development. Instead, both law firms argue that the Chapter 11 filing was “a tactic” to both strengthen Mr Izmirlian’s See PG B13
Govt advisers: ‘No evidence’ of Baha Mar finance Brand Chapter 11 as ‘a pretence’ and bargain tactic Govt responds to heat over China relationship
Two bidders reach Baha Mar shortlist Tribune Business Reporter
PM takes ‘full ownership’ of business ease slippage By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor and NATARIO McKENZIE
Financial provider ‘put cart before the horse’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
‘No chance’ Sarkis could raise $600m
BAHA Mar’s receivers have shortlisted two groups, one with a Bahamian investor connection, as potential ‘preferred bidders’ for the $3.5 billion development, the Prime Minister said yesterday. Perry Christie, in closing the 2016-2017 Budget debate, said the China Export-Bank, Baha Mar’s $2.5 billion secured creditor, had yet to select either of those recommended by Deloitte & Touche as the ‘preferred bidder’ for the property. Referring to the ‘invest-
PM: One has ‘Bahamian investor connection’ Gov’t advisers feared ‘creditor cram down’ ‘Perverse outcome’ to let Chapter 11 proceed ment incentives’ that the Chinese are said to have demanded from the Government, Mr Christie said:
“The Opposition has raised the question regarding concessions which the Government is being asked to consider in relation to the completion of the Baha Mar project. “This is a matter which will require negotiations, primarily with the new investor in this project, who is yet to be decided upon by the China Export-Import Bank. “The current position, as I understand it, is that two firms have been shortlisted. One of them has a Bahamian investor connection.” Mr Christie did not identify the two groups or the ‘Bahamian investor See PG B11
$4.15 $4.20 $4.21
$4.21
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Thursday, June 23, 2016,. PAGE 3
Show resolve to get best images USING an unsuitable image resolution is one of the most common errors when creating designs for print. The result is a fuzzy print quality, or file rejection from your printing company. If you fail to keep an eye on your image resolution from the start, you may end up having to completely recreate your design file from scratch. Here is a guide on what to look out for, and how to ensure your designs are set up with the correct image resolutions.
What is image resolution? The resolution of an image refers to the density of the pixels (or printed dots) that make up that image or graphic. Image resolutions are measured in DPI (Dots per Inch) and PPI (Pixels per Inch). The higher the resolution, the crisper and more detailed the image will be. A lower resolution will be fuzzy, and less detailed. When creating designs for print, we will usually use a 300 dpi resolution document. Your printer might say ‘Make it 297 x 210mm at 300 dpi’, so you would make a 300 ppi A4 document (notice the misuse of DPI and PPI). If you accidentally created this document at 72 ppi, you would have to start from scratch and recreate the design, because you cannot magically generate the extra pixels you require out of thin air. If you are creating a super large document (such as a billboard), your printer might ask you to create the artwork at smaller dimensions, but at a higher resolution (say 600ppi). They can resize the artwork in order to bump it up to the full dimensions, using that original 600 ppi resolution to create a larger document at 150 dpi.
Resolution requirements for printing When an image is sent to an output device, such as a printer or a monitor, its resolution becomes important because each device or medium needs a certain base resolution to reproduce the image with the best possible quality. Let us look at some typical uses of images.
Magazine printing The general rule is that the image resolution needs to be twice the screen ruling used to print the job. Magazines are typically printed using a 150 or 175 dpi screen ruling. This means images need to be 300 dpi. A slightly lower resolution such as 220 to 250
dpi is also perfectly acceptable. For high quality jobs, such as art books or images containing critical patterns, like brick walls or clothing with a pattern, a higher resolution is sometimes recommended by the printer. Typically, 400 dpi is used for such images. The above rule applies to both colour and grey scale images. The notable exception is line art, pure black and white drawings, which contain straight or curved lines. Cartoons or logos are examples of line art. These images require a much higher resolution, and most printers recommend 800 dpi as the bare minimum. Preferably, resolutions of 1200 to 2400 dpi are used.
Newspaper printing Newspapers are printed at a higher speed on lower quality paper. This means the resolution requirements are not as high as those for magazines. Typically a resolution of 200 to 250 dpi is considered sufficient. For line art images, 400 to 600 dpi is recommended.
Billboard printing The larger a picture gets printed, the lower its resolution needs to be. The main reason behind this is that the viewing distance also increases. For large billboards, 30 dpi is often sufficient, which means that many digital cameras are perfectly capable of generating such files.
Printing photos Usually, 250 dpi is considered the optimum resolution for printing high quality photos. Do not be misled by the fact that a photo printer has a much larger resolution, such as 720 or 1440 dpi. The printer may be able to print very small dots, but it can only accurately reproduce colours by combining a large number of dots to emulate various tints. That is why a 250 dpi image offers perfect output quality on a 1000+ dpi printer. The professional photo laboratory equipment used to print thousands of images per day also has a higher resolution, typically 300 to 600 dpi. The same rule applies for pictures printed using such a machine: 200 to 250 dpi offers excellent quality.
Viewing an image on a computer monitor If you are not sure what resolution images are required for a certain project,
PM ‘no debate’ on NHI determination By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net PRIME Minister Perry Christie said yesterday there was “no debate” on his administration’s ambition to move ahead with National Health Insurance (NHI), saying: “We want to be able to bring this to a best possible outcome”. While concluding the 2016-2017 Budget debate, Mr Christie said: “There is no debate on our intention to move ahead. We have hired KPMG, and they are very active, and we engaged with the stakeholders. “We want to be able to bring this to a best possible outcome. That is what we are doing. We believe that the great majority of the people of this country are looking forward to it.” National Health Insurance (NHI) was developed as a policy priority under the first Christie administration. A 15-member Blue Ribbon Commission was appointed to review the feasibility of a National Health Insurance Plan. The National Health Insurance Act 2006 was then tabled in Parliament by the Christie government. The introduction of primary healthcare was slated for April 2016 but, in late March, Health Minister Dr Perry Gomez acknowledged that there would be a delay of about six months so the Government could establish a public insurer. The Government’s NHI
Secretariat recently invited numerous healthcare industry groups and professionals to be part of the Advisory Council, which will oversee reform implementation.
CALL 502-2394 TO ADVERTISE FOR SALE Land and building located off East Bay Street adjacent to Bank of Nova Scotia Trust and Harbour Bay Shopping Centre. Property size is 1.24 acres with buildings containing 32,758 square feet of space under roof in addition 1,940 square feet of covered walkways. Complex is in mint condition and turnkey ready. Inquiries should be directed to J.Albury at 324-7856(H) or 424-2624 (cell)
The Art of Graphix BY DEIDRE M BASTIAN
consult your printer, because if the resolution of an image is too low, this results in: * Loss of sharpness * Pixelated appearance * A ‘stair casing’ effect Resolutions are only one factor that determines the quality of images in a printed job. Image sharpness, noise, colour accuracy and the composition of a picture are as important as its number of pixels. Finally, bear in mind that the choice of printing paper, and the settings of the press, also has a huge impact. Until we meet again, fill your life with memories as opposed to regrets. Enjoy life and stay on top of your game. • NB: The columnist welcomes feedback at deedee21bastian@gmail.com ABOUT THE COLUMNIST: Deidre Marie Bastian is a professionally trained graphic designer/marketing co-ordinator with qualifications of M.Sc., B.Sc., A.Sc. Ms Bastian has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of the Bahamas, Nova South Eastern University, Learning Tree International, Langevine International and Synergy Bahamas.
CAREER OPPORTUNITY Career opportunities are available for ambitious career-oriented individuals at a mid size hotel. We are inviting experienced persons to apply for the following positions:
Security Super visor
Prime Responsibilities and Duties are: • Oversee the proper reporting and documentation of all incidents. • Act as focal point for any investigations involving guests and employees, prepare accurate reports and follow up action plans. • Take the lead on all incidents and emergencies. • Monitoring of camera system and schedule patrolling of grounds. • Assist with the smooth and efficient running of the organization. Qualifications & Experience Required: • Three or more years in the security or military (RBDF & RBPF) field. • Three or more years supervisory experience • Excellent leadership and communication skills. • Must be computer literate with strong administrative skills.
Security Officer
Prime Responsibilities and Duties are: • Assist with any investigations involving guests and employees, prepare accurate reports and follow up action plans. • Ensure that any criminal activity does not hamper the smooth functioning of the hotel. • Assist with and ensure the accuracy of all industrial accident reports. • Take the lead on all incidents and emergencies. • Assist with the monitoring of camera system and scheduled patrolling of grounds. • Assist with the smooth and efficient running of the organization. Qualifications & Experience Required: • Two or more years in the security or military (RBDF & RBPF) field. • Excellent leadership and communication skills. • The ability and interpersonal skills to relate with internal and external customers. • Ability to work as part of a team, as well as independently. • Must be computer literate with strong administrative skills. Competitive salary and benefits package are commensurate with experience. Interested persons should submit their resumes via e-mail to
recruitment.humanresources@outlook.com
PAGE 4, Thursday, June 23, 2016
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Standards Bureau in Jamaica study A CABINET minister and Bahamas Bureau of Standards and Quality (BBSQ) executives undertook a two-day study tour with their counterpart agency in Jamaica to learn how it opetrates. Hope Strachan, minister of financial services and local government, who has responsibility for the BBSQ, said the visit to Bureau of Standards Jamaica (BSJ), which has been in existence since 1969, was an invaluable hands-on experience. The Bahamian delegation listened to presentations by BSJ, the National Certification Body of Jamaica, the Jamaica National Agency of Accreditation (JANAAC) and the National Compliance and Regulatory Authority (NCRA). All shared the “principles, processes, procedures and practices” that have proven useful in advancing Jamaica’s quality infrastructure. They also saw how NCRA operates its metrology and food inspection facilities. The Bahamian group visited a petroleum station to
see how gas tanks are verified and calibrated. Jamaica’s customs department also allowed the officials to observe a standards compliance function visit to the island’s container port. The tour ended with a look into how standards operate at the J. Wray & Nephew Rum factory. “The Bureau of Standards Jamaica has emerged as a critical organisation in nation-building at home, and an elder statesman in the Caribbean community, providing support to other countries in their quest to establish a similar organisation and system,” said Yvonne Hall, BSJ’s executive director. “Having laid a solid foundation, undergirded by the highest principles of standards and quality, BSJ has always warmly embraced the opportunity for knowledge transfer activities to our sister islands across the Caribbean, as well as to other countries,” Ms Hall added: “We are privileged to provide this level of support to your or-
CUSTOMER SERVICE REPRESENTATIVE A well established Offshore company seeks to employ a Customer Service Representative. This role would be suitable for an experienced professional, preferably someone who has previously worked in a similar position. As the customer Service Representative you will: • Meet and greet clients and customers • Respond to internal and external enquiries via email, phone and face-to-face • Manage customer order entries • Manage and update client accounts • Provide customers with quotes and product knowledge • Strong math and calculating skills
A DELEGATION from The Bahamas Bureau of Standards and Quality (BBSQ) conducted a study tour of The Bureau of Standards Jamaica (BSJ). Pictured (front row l-r): Joan Albury, President, The Counsellors Limited; Edison Sumner, BBSQ council member; Dr. Renae Ferguson-Bufford, BBSQ Executive Director; Hon C V Hope Strachan, Minister of Financial Services & Local Government with responsibility for BBSQ; Sherrlyee Smith, Permanent Secretary, Ministry of Financial Services; and Pauline V Curry, BBSQ Chairwoman. (back row l-r) Council members: Craig Delancy, Building Control Officer, Ministry of Public Works and Urban Development; Peter Bates, representative of the interests of manufacturers and Owner of The SignMan; Dr Ernest J Bowe, representative of interests of consumers and Chairman of the Prices Control Commission; Rodney Stuart, representative of the interests of wholesalers and Quality Systems Manager, Caribbean Bottling Company; Dr Pearl McMillan, representative of interests of health professionals and Director of Public Health, Ministry of Public Health; and Patricia Minnis, representative of the interest of agriculturalists and Microbiologist, Ministry of Agriculture and Marine Resources. ganisation and, by extension, your country, as you seek to embrace and inculcate in your operations, as well as in the operations of your stakeholders in government and the private sector in the Bahamas, the over-
arching principles of standards and quality.” Mrs Strachan said: “The Bahamas Bureau of Standards and Quality is one of the key building blocks in creating a quality infrastructure for Bahamian consum-
NOTICE
ers. “Our objective is to ensure that goods imported and intended for export meet set and tested criteria in their processing and production. Moreover, BBSQ will ensure that the provision of services in the coun-
try are in conformity with best practices from a global perspective. ‘Of course, if we’re going to increase trade we have to be able to meet the standards of the developed countries. The only way to do that is first to create and declare standards for your products and services, and then to prescribe processes and procedures to ensure that those standards are maintained.” Mrs Strachan said the BBSQ’s evolution, and the development of standards tessting and infrastructure in the Bahamas, would create jobs and entrepreneurial opportunities tied to science and other sectors. “We’re going to need access to a lot of technical talent. So it’s incumbent upon our high school and university students to consider how they can be a part of the Bahamas Bureau of Standards in this quality infrastructure that we are creating,” Mrs Strachan said. “They can plan to have careers in research, laboratory technology or metrology - professional careers that are critical to creating a successful institution, and on a much larger scale, a quality infrastructure. I believe that this is the way forward for the country.”
NOTICE is hereby given that ELIE LOUIS of East Street South, Domingo Heights, Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23RD Day of JUNE, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, N.P., The Bahamas.
We are looking for someone who is friendly, hardworking and thrives in a fast-paced environment. The successful candidate will also have: • Excellent communication skills • A warm, approachable manner • At least three-four years experience in a customer service position • Extensive experience using MS office software • Experience using database management systems Interested and qualified individuals may submit their resumes to: hrvacabs@gmail.com
with CSR in the Subject Line. Deadline: July 6, 2016 Only short listed applicants will be contacted.
MUST SELL Commercial Building
Located at Lots 12B & 12E situate in the Heavy Industrial Area, Queens Highway, Freeport, The Bahamas
Properties Type: Office Spaces/ Warehouse. Furniture, fixtures, equipment and chattels: The sale of the properties will include such right title and interest that the vendor may have with respect to the furniture, fixtures, equipment and chattels situate in or about the properties. Location: The properties are located in the area of the City of Freeport known as the Heavy Industrial Area. The area can be accessed via Harbour Drive off Queens Highway. Rentable Area: Approximately 20,791 sq. ft. (5,744 sq. ft. office building, 15,047 sq. ft. warehouse building) Properties size: Approximately 2.083 acres or 90,735 sq. ft.
Appraised during 2014 at $1,300,000.
Make Us An Offer!
Telephone inquiries and/ or sealed offers with telephone contact and postal address should be submitted to: The Associate Director, Special Loans P. O. Box N-8329, Nassau, Bahamas Telephone: (242) 394-9853 or (242) 394-9896 Telefax: (242) 393-4288 Terms: 10% upon acceptance; balance upon completion We reserve the right to accept or reject any offer.
THE TRIBUNE
Thursday, June 23, 2016,. PAGE 5
Hotel backs Tru ‘one-stop shop’
CHERALDA ARNETT, Sandyport Beaches Resort’s front desk manager, looks at soaps and candles from My Ocean. The resort came prepared to purchase items that augment its authentic island feel. CHERALDA ARNETT, Sandyport Beaches Resort’s front desk manager, greets minister of tourism, Obie Wilchcombe. The Tru Tru Marketplace was a joint venture between the Ministry of Tourism and the Bahamas Hotel and Tourism Association.
A NEW Providence hotel says the “one-stop shop” created by the inaugural Tru Tru Marketplace event made it easier to source Bahamian-made products. Sandyport Beaches Resort’s front desk manager, Cheralda Arnett, said the property came prepared to make a purchase, and hopes the items selected will enhance the guest experience. “We strive to be 100 per cent Bahamian,” said Ms Arnett. “We use our lobby as a gallery, featuring Clifford Fernander’s artwork, and in the rooms we have Bahama Handprints upholstery and John Paul pieces. At the Tru Tru Bahamian Marketplace, we are looking at items which will enhance our Bahamian flair. “Many hotel rooms from other brands are pretty and modern, but they remind you of any hotel, anywhere in the world. We want our guests to know they are in the Bahamas when they are in our rooms, while feeling modern and comfortable. “So, we are looking at Bahamian-made soaps and candles for the bathrooms, local teas, jams and jellies for the kitchens, and artwork for the rooms.” Ms Arnett added that the Marketplace made sourcing
CAREER OPPORTUNITY Comfort Suites Paradise Island is seeking qualified persons to apply for the following positions:
Engineering Manager: Essential • • •
Job Functions: Working knowledge of systems such as electrical, plumbing, heater, solar panels, mechanical, heating and air condition units. Must be proficient in Preventive Maintenance Programs. Perform preventative maintenance on a scheduled basis and complete work orders as necessary; keep accurate records of PM’s on all rooms and equipment and prepare relevant reports. Have the ability to test, examine, and maintain all hotel’s safety systems to ensure they are 100% operational at all times.
Position Requirements: • Five years experience as a Supervisor or Manager in the Maintenance Department of a hotel
Engineering Can-Fix-It Essential • • •
Job Functions: Repair minor electrical issues, appliances, and minor plumbing. Must be able to repair drywall, flooring, carpentry, masonry and do remodeling jobs. General knowledge to repair heating and cooling units, painting the exterior and pressure washing.
Position Requirements: • Must have three years of hands on experience in the maintenance field. • Experience in the Hotel Industry will be a plus.
Electrician Essential • • • •
Job Functions: Assemble, install, test, and maintain electrical or electronic wiring, equipment, appliances, apparatus, and fixtures, using hand tools and power tools. Diagnose malfunctioning systems, apparatus and components, using test equipment and hand tools, to locate the cause of breakdown and correct the problem. Connect wires to circuit breakers, transformers, or other components. Inspect electrical systems, equipment, and components to identify hazards, defects, and the need for adjustment or repair, and to ensure compliance with codes.
Position Requirements: • Completion of a technical school program. • Three years experience in the field of electrical engineering.
Sales Coordinator Essential • • • Position • • •
Job Functions: Assist with the preparation of sales reports that will assist revenue management; groups, corporate and leisure clients. Prepare all written correspondence and follow up with clients. Oversee all set up and break down of functions
Requirements: Three years experience at a major company or hotel in a similar position; Proficiency in Microsoft Word and Excel spreadsheets; The ability to assist with Sales Functions
Reservations Agent Essential • • • • Position • • •
Job Functions: Receives reservations from various sources: Reservation Terminal, telephone, correspondence, and guests at front desk. Handles arrangements for groups - i.e., rooming lists and pre-registration. Keeps block arrangements secure for group bookings for Sales Department. Maintains all pertinent information with regard to Travel Agent Commissions.
Requirements: Three years experience at a major company or hotel in a similar position; Working knowledge of hotel’s reservation system. General knowledge of office and telephone procedures.
Guest Service Representative: Essential • • •
Job Functions: Register guests and assign rooms. Thoroughly understands and adheres to proper credit, cheque-cashing and cash-handling policies and procedures. Coordinate guestroom maintenance work with the engineering and maintenance department.
Position Requirements: • High school graduate or equivalent. • Previous hotel-related experience desired.
Storekeeper/Receiver: Essential • • • Position • • •
Job Functions: Receive and inspect all incoming materials and reconcile with purchase orders. Process and distribute documentation with purchase orders; reports, documents and tracks damages and discrepancies on orders received. Ensure all goods received are of good quality.
Requirements: High School Diploma required. Two years experience as a Storekeeper required. Must be computer literate.
Competitive salary and benefits package are commensurate with experience. Interested persons should submit their resume to jmcdonald@comfortsuitespi.com
these products much more convenient. “It is really a one-stop shop. Eeverything is here: Spices, soaps, art work, crafts,” she said. “I am impressed by the level of variety and talent displayed; it really allows us to expand our choices. It is ideal for a hotel like us that values an authentic Bahamian feel.” The 72-room boutique resort, located in the Sandyport Marina Village, showcases Bahama Handprints cushions and upholstery throughout, and displays Bahamian artwork - depicting scenes of sea creatures and island life - from artists such as Nassau’s John Paul, Attila Fezst of Abaco, and Clifford Fernander of San Salvador. Prime Minister Perry Christie, speaking at the Tru Tru Bahamian Marketplace, said: “Do we have talent? The answer is, obviously yes,
“There are people who are gifted, but the secret is how to find them and give them an opportunity. We know we should be on a course of action, and that is what [the event] is about... creating an opportunity for their gifts and talents to be seen and tested.” He added that it was the responsibility of both the public and private sectors to ensure not only that Bahamians have opportunities, but tourists receive an authentic product. “The Government must do something, but the private sector must do more,” he said. “Where you find our competition does better than us… they are able - because of cheaper costs - to put more indigenous flavour into their tourism product. “We are at the stage now where tourists spend $250-$300million on handicrafts and souvenirs, and it’s questionable the extent
to which they buy things authentically Bahamian. I hope, therefore, that this kind of exhibition is indicative of the path we are on - to give an increasing basis for Bahamians to take advantage of the talent that they have.”
HARBOUR BAY
SHOPPING
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SPACE for
RENT 357-3414
House For sale: Fully furnished 3 bedrooms 2.5 bathrooms house, Orchard Terrace off Village road. 425k ono 424-6336 serious inquiries only
PAGE 6, Thursday, June 23, 2016
PM takes ‘full ownership’ of business ease slippage From pg B1 20-day filing periods in effect in the Dominican Republic, Grenada, Dominica and Swaziland. In some cases, 15-day filing periods are mandated; for example in St. Kitts and Nevis, some Brazilian states and in Jamaica, if the cash method is used. Chile imposes a 12day filing period.” Whether the 6,000-plus VAT registrants, and the Government’s own systems, are ready for a 21-day filing period after just 18 months of the new tax’s operation is open to question. Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, previously told Tribune Business that the key for the private sector was how reforms such as the VAT 21COMMONWEALTH Brewery directors are pictured L to R: Dennis Hanna; Radovan Sikorsky; Eugene Ubalijoro; Julian Francis, chairman; Cecile Williams-Bethel; Hans Neven , chief executive and managing director; and Ed Fields.
day payment window would operate in practice. The VAT amendment is due to take effect from January 1, 2017, and Mr Bowe questioned whether the Government expected to have complete and accurate returns filed in that timeframe, along with the associated paperwork. “Payment within 21 days should be available because the funds are being collected on behalf of the Government,” the Chamber chairman added. Distinguishing between paperwork and the submission of payment, Mr Bowe said the 21-day deadline should be for “provisional” VAT payment, with registrants given extra time to adjust the sum once they filed their returns. “If it’s a situation of hav-
ing to make provisional payment in 21 days, and final payment in 28 days, it’s a possible solution,” he told Tribune Business. “We’re [the Chamber] still canvassing the business community. We acknowledge the Government wants to collect its revenue.” Mr Bowe, though, said most of the 6,000-plus VAT registrants would likely require more than 21 days from period-end to complete all the ‘netting’ and other calculations required to work out the correct sum due to the Government. Elsewhere, Mr Christie yesterday pledged to focus on “supply side economics” to boost the Bahamas’ weak GDP growth levels and competitiveness. “The Bahamas is taking full ownership of its rankings in the various competitiveness indices, and as a Government, we have vowed to become a smarter, more competitive jurisdic-
tion,” he said. “We have committed to enabling business, small and large, to succeed within our markets. We want to promote entrepreneurship and innovation. For this, a strong business culture and a healthy sense of co-operation with the business sector is required.” Turning to the Bahamas’ flagging ‘ease of doing business’ indicators, Mr Christie said the Government was seeking greater co-ordination between the Ministry of Works and Bahamas Power & Light (BPL) to reduce the time it takes for new businesses to be connected to energy supplies. Acknowledging the Bahamas’ 183rd ranking, out of 189 nations, for the ‘ease of registering property’, the Prime Minister acknowledged this was largely driven by the challenges attorneys have in ensuring there is ‘good title’, and no encumbrances, liens and
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mortgage charges on real estate. The recording of conveyances at the Registry of Records was another issue, and Mr Christie said: “Significant improvements can be made through the use of technology to facilitate full online searches of the registry, reducing the time to do a search from the current one to two months to a few days. “Improving the technology is only part of the answer, as we also need to improve the service provided by the various government departments. The initiative to strengthen the public service, to create more accountability and improve staff performance, will have long-run benefits as it will remove a number of the bureaucratic hindrances that adversely impact business in the Bahamas.” Mr Christie said the Bahamas ranked 111th in the world when it came to pro-
tecting minority investors, and said the Government was aware of the need to improve the Companies Act and related legislation. “My government is committed to improving the business environment here in the Bahamas, but we do not seek to do this blindly. We seek to be informed by the experts on the best course of action and the vision and desires of the Bahamian public,” the Prime Minister added. “It is easy to stand up here and talk about all that is wrong. It is easy to criticise. It is a much harder job to listen to the needs and wants of the people, to listen to the advice of the experts, and to commit the required resources and make the necessary hard institutional changes. “My government is prepared, no, dedicated to doing this and making the Bahamas the best country in which to do business.”
Brewery re-elects Board of Directors
owns and operates 55 stores on 11 islands, and manufactures and bottles beverages, including Kalik, at its 150,000 square foot plant on the south-west coast of New Providence. Commonwealth Brewery offers more than 225 labels at its retail stores and through wholesale sales. Since going public in 2011, the company has paid out $80 million in dividends, and its share price has nearly doubled from $8.33 at the time of the initial public offering (IPO) to $15.50 at year-end fiscal 2015.
COMMONWEALTH Brewery (CBL) shareholders have re-elected the full slate of officers that served the BISX-listed brewer and distributor during 2015. The unanimous vote came during the company’s annual general meeting (AGM) held at the British Colonial Hilton on June 8. More than 100 attended the AGM, re-electing members of the board including
Julian Francis, who has served as chairman since the company went public in 2011. Some 75 per cent of Commonwealth Brewery’s shares are owned by Heineken, and 25 per cent by Bahamian investors, including the National Insurance Board (NIB), which is represented on the Board by Ms Williams-Bethel. Commonwealth Brewery
FOR SALE Single family residence comprising of four (4) bedroom three (3) bathroom located Lot # 13 Situate on Breezy Hill off Village Rd Property size of 28,848 square feet Contact Info: Tenders are invited to submit offers to: The Sr. Manager, Special Accounts specialaccounts@scotiabank.com Telephone Contacts: 356-1400 / 356-1424 / 356-1608
THE TRIBUNE
Thursday, June 23, 2016,. PAGE 7
BPL ‘hands tied’ for 12-18 months From pg B1 “I would think BPL’s hands are going to be tied for at least another 12-18 months,” Mr Moss told Tribune Business. “They will not be granted a rate increase until after the election.” He, like many observers, suggested that a ‘base rate’ increase was needed not only to stabilise BPL’s finances and operations, but also to give potential investors and lenders confidence the energy monopoly will be able to pay its debts. “They need a rate increase for any investor or lender to be confident they’ll be able to repay the debt people may buy into,” Mr Moss added. He also questioned whether a ‘management agreement’ was the best approach to solving BPL’s woes, suggesting that potential weaknesses in the model had already been exposed. “To me, going the route of a management agreement is the wrong way,” Mr Moss said. “You either sell the thing or you keep it. “I don’t know how effective that will be in operating a utility system, particularly when we see the first step in the process, the need for a rate increase, knocked down. What kind of model is that? That’s just a model of frustration for whoever is in there.” Rather than privatise state-owned entities outright, the Christie administration has sought for the Government to retain 100 per cent ownership, while introducing private sector management to operate them. It is especially attracted to the ‘NAD model’ at Lynden Pindling International Airport (LPIA), where NAD was created to operate the facility, overseen by Canadian-based Vantage Airport Group under a 10-year agreement. The Government is supposed to refinance BEC’s legacy bank and bond debt,
plus take care of its pension, severance and environmental liabilities, via the placement of a $600 million Rate Reduction Bond (RRB). This is unlikely to occur until late 2016 at earliest and, until it does, BPL’s ability to borrow and raise financing to overhaul its generation and transmission and distribution infrastructure will be severely constrained. Deputy Prime Minster, Philip Davis, who has ministerial responsibility for BPL, said it planned to borrow $100 million, but added that this would only occur in the 2017-2018 fiscal year - more than 12 months from now. V Alfred Gray, minister of agriculture and fisheries, confirmed last week that the Government had “put the brakes on” a proposed BPL rate increase, feeling it was “not the right time” for such a move. The Government’s action was likely due to the impact on businesses and households, and subsequent voter fall-out, that such an increase in utility costs might produce. However, with oil prices still relatively low, some observers have argued that now is the ‘best’ time for a base rate rise. Mr Moss, meanwhile, said that by failing to follow through on the plans left by his Board in 2012 to add 54 Mega Watts (MW) of generation capacity, the Christie administration had inadvertently facilitated BPL’s present generation woes. “The impact has been three-fold,” he explained. “The need to continue to pay for rental generation, which BPL at the end of the day has no interest in, that’s just money that would have gone out the door.” Mr Davis announced on Wednesday that BPL was set to hire another 80 MW of rental generation capacity to combat the current outages, which represents a further drain on the utility’s cash flow. Mr Moss added, though,
that Bahamian households and businesses would have enjoyed even lower electricity bills had the former Board’s generation plan been acted on. That called for the installation of a 24 MW gas turbine, plus a 12 MW steam turbine, which would have run off steam heated by the former turbine’s exhaust. The final part of the plan called for the installation of an 18 MW slow speed diesel generator. “Consumers have had to pay a higher bill for electricity, as the fuel component is higher because of the failure to put in a slow speed diesel generator at Clifton Pier, and the failure to have converted the gas turbine put in at Blue Hills to a combined cycle model of operation,” Mr Moss told Tribune Business. “With the heat recovered from the gas turbine, you can produce a 50 per cent increase in power [12 MW from 24 MW] without burning one iota more of fuel.” Only the 24 MW gas turbine has been installed todate, but had the current administration followed through with its plan, Mr Moss said: “The number of outages to customers would have been reduced. “It would have been much, much easier. Consumers would not have been subject to the frequent power outages they were last year, incremental generation would have been online, and consumers would be enjoying a lower rate of electricity. Opportunity cost lost.” Mr Moss, in an e-mail to Tribune Business, expressed optimism that the eventual removal of BEC’s legacy debt would enable BPL to go much further than the plans left by his Board. Besides the 12 MW steam turbine and heat recovery steam generator(HRSG),Mr Moss suggested that it would have the capital to install another 24 MW gas turbine and HRSG. This, he added, would ensure steam from both 24 MW gas turbines to feed a 24 MW steam turbine. “The cost for the new 24 MW gas turbine, the two
HRSGs, plus the 24 MW steam turbine generator plant, is estimated to be $48 million,” Mr Moss said. “The STAG plant, with a heat rate of approximately 8,000 Btu/kWh, has a thermal efficiency similar to a diesel plant. The challenge for the STAG plant presently installed at BEC, and the one that’s proposed, arises because the STAG plant burns diesel fuel, which costs almost 50 per cent more than the heavy fuel oil burned in the Clifton Pier diesel plant.” Mr Moss suggested that this be addressed by changing BPL’s fuel mix, and putting in place infrastructure that allows gas turbines to do what they are designed for - burn gas. “Two steam and gas (STAG) plants, burning gas, will provide BEC with in excess of 100 MW of reliable, low cost, base load generation,” he added. “A cost:benefit analysis should be carried out to determine whether, with gas available at Blue Hills, retrofitting the simple cycle gas turbine units to also burn gas, further driving down fuel costs, might be advisable. “Based on studies I have been privileged to be exposed to, it should be possible for gas to be made available to BEC at a cost about 20 per cent less than the cost of heavy fuel oil/Bunker ‘C’. Diesel oil costs about 50 per cent more than Bunker ‘C’. The cost to BEC of gas will therefore be about 60 per cent less than the cost of diesel oil.” STAG plants burning gas, Mr Moss said, would attract lower capital, operating and maintenance costs, while also passing on lower fuel costs to BPL consumers. Calling for the 18 MW slow speed diesel turbine to still be installed at Clifton Pier, at a cost of $24 million, Mr Moss said: “When overhauled and suitably maintained, together with the simple cycle gas turbine plant at Blue Hills, it will yield an adequate quantum of low cost, reliable generation plant for BEC to meet the needs of its customers at a capital cost of less than $100 million.
“It is to be noted that BEC’s woes are not entirely the result of generation challenges. A goodly number are due to transmission and distribution issues. Yet BEC remains the only utility that I am aware of that
doesn’t perform work on its energised conductors (live line work), but rather subjects its customers to numerous planned outages to perform the most routine maintenance work to its lines.”
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THE TRIBUNE
TAKE NOTICE that the following Civil Appeal matters have been set for Call Over before His
Lordship, The Honourable, Sir Hartman G. Longley, Chief Justice in his Chambers, located on the 3rd floor of the Ansbacher building on Thursday, 7th July, 2016 at 10:00 a.m.
GN-1759 Supreme Court Cont’d No.
Appellant Magistrate and Court No. Magistrate Decision Date
Respondent 6 Kelvin Leach Lennard Newton
Appellant Attorney/Firm on record (or) Last Known Address Clarita V. Lockhart E.P. Toothe & Associates
Richard Nadon and Glendina Spence Tony Newton Magistrate: Derrence Davis Rolle Administrator: Huntley Christie Court:No. Nicholl’s Town Magistrate Court 5 Decision Date: 11 November,2011 2010 7ththSeptember, Andros 13. Derek Bernard Ryan Michelle LaGloriaEngineers Ryan Derek Bernard Ryan 2. Judson J. Wilmott The Professional Munroe & Associates Deputy Registrar:Engineer’s Marilyn Meeres and (PEB) c/o Ryan & Co. The Professional Board Board Supreme Date: Court 30th June, 2010 Melinda Lockhart Decision Decision and Date:Ronald 1st December, Nattell Russell 3. Danielle Sawyer2011 V. Alfred Gray & Co. 14. Julian B. Pratt Lavern Linda Knowles V. Alfred Gray & Co. Magistrate: Ancella Evans Williams Administrator: Jordan Ritchie Magistrate Court: Cooper’s Town Abaco MagistrateDate: Court: Town Long Island Decision 9th Clarence December, 2010 Decision Date: 20th October, 2011 4. Sharnette Thompson-McKinney Gregory McKinney V. Alfred Gray & Co. 15. Lambert Cartwright Deidri Ann Rolle Arthur D. Hanna & Co. Magistrate: Carolyn Vogt Evans Magistrate:Court RogerNo. Gomez Magistrate 3 MagistrateDate: Court 1 Decision 9thNo. November, 2010 Decision Date: 13th November, 2011 5. Franklyn Brown Island Hotel Company Ltd. Richard Boodle & Co. 16. Furnitureof Plus Cleo Cleare Oxford Law Chambers Chairman the Limited Binding Arbitration Magistrate: James Moxey Tribunal th MagistrateDate: Court 13 Decision 18No. August, 2010 Decision Bain Date: 24th March, 2011 6. Antonio Jermaine and Simone V. Alfred Gray & Co. 17. Oralyn Smith Patrick Wells Sivle Law Chambers Magistrate: Roger Gomez Daley Magistrate:Court Derrence Magistrate No.1Rolle Davis th MagistrateDate: Court 5 2010 July, Decision 13No. DecisionFerguson Date: 14th April, 2011 7. Rosilda Drexel Deal Rosilda Ferguson 18. Berthrom and Cleopatra Thurston Daisy Minnis French Berthram Magistrate: Carolyn Vogt Evans (Pro Se) and Cleopatra Magistrate:Court Ancella Williams Thurston Magistrate No.Evans 3 nd 6 MagistrateDate: Court Albury Street, June, 2010 Decision 22No. th Decision Date: 15 Cunningham 8. Amos and Pauline March, Rolle 2011 Bryan Barrett Sivle Law Chambers 19. Keva MajorJames Moxey Tshura Cornish Wells Legal & Magistrate: Magistrate: Court Subusola Corporate Services Magistrate: No.Swain 13 MagistrateDate: Court: Decision 14thth11July, 2010 Decisionand Date: 5 February, 9. Phillip Brenda Mitchell2011 Amanda and Dominic Phillip and Brenda 20. Alice Langfort Tewana Butler-Kemp Lennox Paton Chambers t/a Universal Distributors Ferguson Mitchell (Pro Se) t/a Tambearly School Magistrate: Ancella Evans Williams Twynam Heights Magistrate:Court: James No. Moxey Magistrate 6 Magistrate Court: No. 13 2010 Magistrate: 26th October, th DecisionDeal Date: 9 May, 2011 10. Melissa Charles and Sharia Munroe & Associates 21. Sean R. Thurston Krishma Fernander Sean R. Thurston Magistrate: Subusola Swain Edwards Magistrate: James Moxey (Pro Se) Magistrate Court No. 11 Magistrate Court No. 13 th Decision Date: 24th November, 2010 Decision Date: 15 July, 2011 11. Kendrick Fisher Agusta Johnson Newbold & Associates Magistrate: Ancella Evans Williams Magistrate Court No. 6 AND FURTHER TAKE ndNOTICE that should you fail to attend the aforesaid Call Over on the date Decision Date: 22 February, 2010 and the time fixed therefore, such Order may be made in your absence as the Court deems fit. 1. 12.
Dated this 20th of June, A.D. 2016. Signed by: Donna D. Newton (Mrs.) REGISTRAR
VACANCY Major law firm is immediately seeking a detail oriented, hands-on individual to fill the position of Legal Secretary. The successful candidate must be an exceptionally motivated, hardworking and dynamic individual having at least 4 years previous legal experience within the litigation and real estate practice areas. Required skills, knowledge: • Experience in drafting pleadings, originating applications and claims and other court documents; preparation of agreements for sale, conveyances and mortgages, and other relevant documents; • The ability to use initiative, multi task, work accurately under pressure, possess exceptional organizational and communication skills and be able to work overtime and weekends; • Computer literacy, including advanced proficiency in the use of Microsoft applications. Compensation: Commensurate with qualifications and experience; excellent benefits; Only short-listed applicants will be contacted. Reply in confidence to: vacancy50@gmail.com
Thursday, June 23, 2016,. PAGE 11
Two bidders reach Baha Mar shortlist From pg B1 connection’, adding that he had asked the China Export-Import Bank and its receivers to “separate” Baha Mar’s construction completion from the task of finding a purchaser. He said the Deloitte & Touche receivers were currently in Beijing, meeting with the China ExportImport Bank (EXIM) and China State Construction Engineering Company (CSCEC) to hammer out an agreement for construction remobilisation. “The EXIM Bank, the receiver-managers and the construction company are currently in Beijing; as we speak they are currently in Beijing,” Mr Christie told the House of Assembly. “The Government of the Bahamas is not a party to those talks. We can observe, but we are not a party to those talks. Those talks are now taking place, Mr [Raymond] Winder leading a team as the receivermanager in Beijing, with the construction company and the leadership of the bank, and they are discussing and negotiating a construction contract in order to remobilise and complete the project as soon as possible.” Mr Christie announced last month that the Government and two Chinese entities had entered into a “framework agreement” to complete the stalled Baha Mar resort “as expeditiously as possible”. Mr Christie yesterday again defended his administration’s role in the Baha Mar saga, saying he did
whatever he could to facilitate the involvement of Baha Mar’s original developer, Sarkis Izmirlian. He yesterday sought to destroy what he called “the myth” that his administration had exercised poor judgement in opposing the original developer’s Chapter 11 bankruptcy filing in a Delaware court. To do this, he released two separate memorandums, dated June 20, 2016, from the Government’s US and UK attorneys, which said it would have been “a perverse outcome” for a Delaware court to determine the fate of a $3.5 billion Bahamas-based investment project. Charles Russell Speechlys, the UK legal advisers, justifying the Government’s decision to oppose Mr Izmirlian’s Chapter 11 bankruptcy protection filing, said it was “a fundamental tenet” of cross-border insolvency law that winding-ups and receiverships be administered by courts in the same country as the subject company or assets. “Had [Chapter 11] recognition been granted, the Bahamian court would have been such a ‘foreign court’ - a perverse outcome,” Charles Russell Speechlys said, as the Delaware Federal Bankruptcy Court would then have become the primary forum determining Baha Mar’s fate. “One of the reasons the Government of the Bahamas resisted the recognition of the Chapter 11 was because were it to do so, it would have been tanta-
NOTICE
NOTICE is hereby given that DEUS OLGENS of Carmicheal Road, Cowpen Road, Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23RD Day of JUNE, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, N.P., The Bahamas.
mount to Government of the Bahamas accepting that the Delaware court had primacy over the Bahamian court in this matter, and the Bahamian court’s role and jurisdiction in this matter would have been limited to assisting the Delaware court in its supervision of the Chapter 11 process. The Government of the Bahamas was strongly advised that it should not allow this to happen.” Charles Russell Speechly added that the Government could not be bound by the Chapter 11 process itself without consenting to this. Yet all the unsecured Bahamian creditors would have been bound. “It would arguably have been untenable for the Government of the Bahamas to advocate the recognition of a process that allowed a debtor to ‘cram down’ the interests of Bahamian creditors, whilst Government of the Bahamas would have to be made whole in the process,’” the UK law firm argued. Hogan Lovells, the Government’s US attorneys, said the Chapter 11 filings had given Mr Izmirlian “short-term tactical benefits - at a steep price”. The consequences of letting the Chapter 11 process proceed, it argued, would have been Baha Mar deciding what contracts to retain or discard, leaving all unsecured creditors without any security. Hogan Lovells added that Mr Izmirlian subjected Baha Mar’s assets “to the exorbitant fees payable as administrative expenses” to attorneys and advisers in the Chapter 11 process. These fees became priority payments over unsecured creditors, and totalled more than $6.3 million. “Had the Chapter 11 cases continued, the attorneys’ fees would have increased dramatically, and the Baha Mar debtors also would have been expected to pay investment bankers’ fees of $150,000 per month, plus additional fees based on milestones, subject to a cap of $14 million,” Hogan Lovells added.
THE TRIBUNE
Thursday, June 23, 2016,. PAGE 13
‘No chance’ Sarkis could raise $600m From pg B1 negotiating position with the Government and his Chinese partners, and prevent the China Export-Import Bank acting to realise its $2.5 billion security. Prime Minister Perry Christie tabled the memorandums from the Government’s US and UK legal advisers in the House of Assembly yesterday, in a bid to show it was correct to oppose Mr Izmirlian’s Chapter 11 bid through the Bahamian and Delaware courts. With no resolution in sight to the ongoing Baha Mar impasse, and under fire for its perceived close relationship with the Chinese, the Government seems to have rapidly sought assistance from its foreign attorneys. Both memorandums are designed to justify the Government’s decision to oppose Mr Izmirlian’s Chapter 11 filing last June, and bring oversight of the Baha Mar dispute back within the oversight of the Bahamian court system. They are each dated June 20, 2016, indicating that the Christie administration only reached out to its foreign legal advisers within the last week, as criticism intensified over the ‘concessions’ the Chinese are allegedly seeking to complete Baha Mar. The Charles Russell Speechlys analysis indicates that it was provided in response to an e-mail request from Allyson MaynardGibson, the attorney general, on June 19, 2016. The UK law firm produced what was requested within 24 hours, while Hogan Lovells’ memorandum is headlined: ‘Baha Mar’s Chapter 11 proceedings: Distinguishing Facts from Fictions’. With the ‘one year’ anniversary of Mr Izmirlian’s June 29, 2015, filing for Chapter 11 protection less than a week away, Hogan Lovells said: “The passage of time and fading of memories have left room for mistaken impressions about the short-lived Chapter 11 cases, and what those cases could have been expected to accomplish.” It added that its memorandum “may help to dispel confusion and to explain the Government’s continuing support for plans to remobilise and complete the Baha Mar project” via the China Export-Import Bank’s receivers and the Supreme Court. Hogan Lovells attorneys,
Craig Ullman and Edward Dolan, said it was “unrealistic, at best” for Mr Izmirlian and his executive team to claim Chapter 11 was initiated to place Baha Mar “on a firm financial foundation” so that its construction could be completed as soon as possible. While Mr Izmirlian’s team had estimated that Baha Mar’s completion and opening would cost $600 million as at July 2015, Hogan Lovells argued there was little prospect of Mr Izmirlian obtaining the necessary financing other than through the China Export-Import Bank. With Baha Mar not operational, its assets were largely already mortgaged as security to the Chinese state-owned bank, meaning there was no room for another debt financier to enter the picture. “There was no realistic prospect that the Baha Mar debtors could raise an additional $600 million (or the additional investment required to cover deficits until resort operations reached the break even point),” Hogan Lovells said. The US law firm argued that Baha Mar’s own Chapter 11 reorganisation plan had unwittingly exposed this, as its success depended on having the financing necessary to both complete the $3.5 billion and finance its initial operating period. Payments to Bahamian and foreign creditors hinged on this financing as well, Hogan Lovells said, making it the key factor in any effort by Baha Mar to exit Chapter 11. Hogan Lovells said Baha Mar’s restructuring plan provided no evidence that it had obtained commitments for the necessary financing, which would have to take the form of either equity or debt that ranked second to the China Export-Import Bank. “It follows that until and unless the debtors [Mr Izmirlian and Baha Mar] can show that they have obtained a binding commitment or commitments from a credible source or sources, for new investment in the range of $500 million to $700 million (or more), their plan is nothing more than a pretence,” Hogan Lovells concluded. “Thus, the plan was nothing more than a hypothetical construct, dependent on the availability of hundreds of millions of dollars of exit financing that the Baha Mar debtors stood no chance of obtaining.” Hogan Lovells continued:
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“The developer of a partially completed real estate project can ill afford any protracted dispute with its secured lender unless the project can be refinanced from other sources. “Notwithstanding Sarkis Izmirlian’s claims to the contrary, there never appears to have been any realistic possibility that refinancing or additional financing of the Baha Mar project could be available from any source other than China Export-Import Bank - or a new lender or owner of the project. “The Government recognised last July that the Chapter 11 filings were a tactic employed by Sarkis Izmirlian to improve his negotiating position by preserving his control over the Baha Mar debtors and his ability to cause delays that would have become increasingly ruinous for the Bahamian people and economy.” Hogan Lovells said “subsequent events” had justi-
fied this assessment, although it not identify what these were. Charles Russell Speechlys, meanwhile, even headlined a section of its analysis as ‘Evidence Izmirlian is without funds’, and ‘Promises of funding are without foundation’. It said of the Chapter 11 filing: “That process was one where Sarkis Izmirlian (would have) remained in the driving seat..... “Baha Mar’s Chapter 11 was not so much a credible restructuring plan that would safeguard the future of the companies and ensure the swift completion of the resort, but instead was a defensive tactic to prevent China Export-Import Bank from enforcing its security (and to enhance Izmirlian’s bargaining position).” Charles Russell Speechlys acknowledged that Chapter 11 “can be a highly effective tool” that allows companies to restructure and survive. It argued, though, that Baha
Mar’s lack of cash, and the fact it was not generating operational income, was a major impediment. “Even if the reported sum of $600 million could have been found to complete the works, there was no evidence that the substantial amount of working capital that would be required was in place to see the resort trade through to break even,” the UK law firm concluded. It agreed that China Export-Import Bank’s substantial security over Baha Mar’s assets made prospects of securing a new debt financier “remote at best”. “The Chapter 11 process was a device (either in whole or in part) designed to strengthen Sarkis Izmirlian’s hand in negotiations with the China Export-Import Bank, China Construction America and the Government of the Bahamas,” Charles Russell Speechlys said. “The dismissal of the Chapter 11 process resulted in the loss of that hand.” The UK law firm said Mr Izmirlian would have produced any financing he had secured during the Chapter 11 process, and said it had not seen any public confirmation that he was “in a position to advance further funding”, despite being given “ample opportunity to do so”. Mr Izmirlian, though, has repeatedly said he has - or will be able to obtain - the necessary financing to com-
plete and open Baha Mar in the many releases he has issued on the ‘offers’ made to the China Export-Import Bank. His last offer was for both he and the bank to split the $600 million financing cost, and that CCA be ditched as project contractor. Mr Izmirlian has also pledged to make the China ExportImport Bank and all Bahamian creditors ‘whole’. Some observers, though, have become sceptical as to whether he possesses the necessary financing, given that the Chinese bank would likely seize on his offer to be ‘made whole’ if the funding was in place. They are also questioning why Mr Izmirlian has not produced his financing to-date, both at the Chapter 11 stage and to prevent the loss of his family’s $800 million investment, plus the decision not to participate in the Baha Mar sales process being run by receivers, Deloitte & Touche.
PAGE 14, Thursday, June 23, 2016 ment fund under the same two sections of the Act. Justice Crane-Scott said the two questions, as framed, would require the Court of Appeal to determine what was meant by the relevant sections of the Investment Funds Act. She added, though, that both were based on ‘fact’ as opposed to a ‘point of law’,as Fund Haven’s argument was that South American Investment Fund Ltd was “once licensed as an investment fund, but had subsequently ceased to be so”. As a result, given the definition of ‘investment fund’ in the Act, their argument was that neither could have breached the law, as the Securities Commission had found. Fund Haven (Accuvest) had been found guilty of failing to submit its financial statements to the Securities Commission for the years 2005-2007, plus the annual declaration for 2006. The regulator’s disciplinary panel also found that South American Investment Fund Ltd was operat-
Financial provider ‘put cart before the horse’ From pg B1 recorded how Fund Haven and its client sought the Court of Appeal’s permission to appeal on the grounds that the case raised “two points of law of general public importance”. Gawaine Ward, the Securities Commission’s inhouse attorney, objected because the Supreme Court ‘certification’, confirming that it involved two issues of importance to the wider financial services industry, had been produced “more than two years” after the judge who heard the case had left office. The Court of Appeal, though, allowed the hearing to proceed after Gail Lockhart-Charles, the attorney for Fund Haven, produced a Supreme Court transcript purporting to show that then-Justice Claire Hepburn had agreed to ‘certify’ the appeal as raising key questions regarding the securities and investment
funds sector. For the Court of Appeal to rule in Fund Haven’s favour, Justice Crane-Scott said its 16 ‘grounds of appeal’ had to show a “point of law” was at issue. And it then had to demonstrate that the case raised issues “of general public importance”. “Mrs Lockhart-Charles submitted that the several grounds of the intended appeal involve two points of law of general public importance,” Justice Crane-Scott recalled. These were whether, under section 7 (1) of the Investment Funds Act 2003, a company that did not act as an investment fund, could be deemed to be doing business as such a vehicle under the Act’s section three. And whether a company once licensed as an investment fund by the Securities Commission, but no longer operating as such, can still be considered an invest-
ing without the required licence, and failed to submit its annual declaration for 2008. Fund Haven (Accuvest) was fined $53,500, while its client was subjected to a $27,500 penalty. The Supreme Court, while upholding the Securities Commission verdict, reduced the fines to $36,000 and $20,000, respectively. “We must confess that we have found great difficulty in understanding what possible connection these two questions have with the intended grounds of appeal as framed,” Justice CraneScott ruled, indicating that the Court of Appeal was unimpressed with Fund Haven’s arguments. “It is also not hard to discern that both questions have been carefully crafted to buttress the grounds of the intended appeal, but we are convinced that neither question has any obvious connection with any of the grounds. Nor do the questions relate to any ground which specifically seeks to impugn the judge’s interpretation of section 7(1) of
THE TRIBUNE
the Investment Funds Act.” Justice Crane-Scott said Fund Haven and its client had “placed the proverbial cart before the horse”, adding that the questions raised no ‘point of law’ or issue “of great public importance to the Bahamas’ financial services sector and to the public generally.” Mr Ward, for the Securities Commission, argued that the Fund Haven appeal was based on an interpretation of the facts, and raising issues that had not been brought before the regulator’s disciplinary committee - that South American Investment Fund should not be treated as an investment fund, because it no longer held such a licence. Justice Crane-Scott said South American Investment Fund had been licensed as a SMART fund in 2004 when it chose to become registered, and the Supreme Court had found “it could not simply choose to be registered” - especially if the Securities Commission had not been informed. “Section 7 of the Investment Funds Act provides
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Ht.(ft.)
Low
Ht.(ft.)
Today
10:43 a.m. 11:03 p.m.
2.5 3.1
4:45 a.m. 4:40 p.m.
0.0 0.0
Friday
11:29 a.m. 11:48 p.m.
2.6 3.1
5:28 a.m. 5:27 p.m.
0.0 0.1
Saturday
12:20 p.m. ‑‑‑‑‑
2.6 ‑‑‑‑‑
6:13 a.m. 6:20 p.m.
0.0 0.2
Sunday
12:37 a.m. 1:15 p.m.
3.0 2.7
7:01 a.m. 7:18 p.m.
0.0 0.2
Monday
1:31 a.m. 2:13 p.m.
2.9 2.8
7:53 a.m. 8:22 p.m.
0.0 0.2
Tuesday
2:29 a.m. 3:15 p.m.
2.8 3.0
8:49 a.m. ‑0.1 9:28 p.m. 0.2
Wednesday 3:30 a.m. 4:17 p.m.
2.7 3.1
9:47 a.m. ‑0.2 10:35 p.m. 0.2
sun anD moon Sunrise Sunset
6:21 a.m. 8:03 p.m.
Moonrise Moonset
10:39 p.m. 9:16 a.m.
last
new
First
Full
Jun. 27
Jul. 4
Jul. 11
Jul. 19
CaT Island
E
W
High: 86° F/30° C low: 80° F/27° C
N
S
E
W
6‑12 knots
S
8‑16 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 88° F/31° C Low .................................................... 79° F/26° C Normal high ....................................... 87° F/31° C Normal low ........................................ 74° F/23° C Last year’s high ................................. 91° F/33° C Last year’s low ................................... 77° F/25° C Precipitation As of 2 p.m. yesterday .................................. trace Year to date ............................................... 20.97” Normal year to date ................................... 12.32”
High: 86° F/30° C low: 81° F/27° C
TO ADVERTISE TODAY IN THE TRIBUNE CALL @ 502-2394
uV inDex toDay
TOnIGHT
High: 91° F/33° C low: 77° F/25° C
that upon its election to be licensed as an investment fund, a company shall from the date of licensing be deemed an investment fund for purposes of the Act,” the Court of Appeal ruled. “Once licensed, an investment fund is, as the section expressly states, subject to the provisions of the Investment Funds Act, and becomes obligated to comply with the applicable regulatory provisions..... “The judge clearly found that once licensed, a company could not simply ignore its obligations, particularly if it did not inform the Commission, as the regulator, of its decision. This finding has not been appealed.”
andrOs
san salVadOr
GreaT eXuma
High: 86° F/30° C low: 79° F/26° C
High: 86° F/30° C low: 80° F/27° C
N
High: 88° F/31° C low: 82° F/28° C
E
W S
lOnG Island
insurance management tracking map
High: 87° F/31° C low: 80° F/27° C
7‑14 knots
mayaGuana High: 86° F/30° C low: 80° F/27° C
Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
CrOOKed Island / aCKlIns raGGed Island High: 85° F/29° C low: 80° F/27° C
H
High: 86° F/30° C low: 80° F/27° C
GreaT InaGua High: 88° F/31° C low: 82° F/28° C
N E
W
N E
W
S
S
10‑20 knots
10‑20 knots
marine Forecast aBaCO andrOs CaT Island CrOOKed Island eleuTHera FreepOrT GreaT eXuma GreaT InaGua lOnG Island mayaGuana nassau raGGed Island san salVadOr
Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:
WINDS SE at 6‑12 Knots ESE at 4‑8 Knots SE at 6‑12 Knots ESE at 7‑14 Knots ESE at 8‑16 Knots ESE at 7‑14 Knots E at 10‑20 Knots E at 8‑16 Knots E at 7‑14 Knots ESE at 7‑14 Knots SE at 4‑8 Knots ESE at 6‑12 Knots E at 8‑16 Knots ESE at 8‑16 Knots E at 10‑20 Knots E at 10‑20 Knots E at 10‑20 Knots E at 8‑16 Knots E at 8‑16 Knots E at 8‑16 Knots ESE at 4‑8 Knots ESE at 4‑8 Knots E at 10‑20 Knots ESE at 10‑20 Knots E at 7‑14 Knots ESE at 7‑14 Knots
WAVES 3‑5 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 3‑5 Feet 2‑4 Feet 3‑6 Feet 3‑6 Feet 3‑5 Feet 3‑5 Feet 1‑3 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet 3‑6 Feet 3‑6 Feet 2‑4 Feet 2‑4 Feet 4‑7 Feet 4‑7 Feet 1‑3 Feet 1‑3 Feet 3‑6 Feet 3‑5 Feet 2‑4 Feet 1‑3 Feet
VISIBILITY 8 Miles 8 Miles 8 Miles 5 Miles 8 Miles 5 Miles 8 Miles 8 Miles 8 Miles 5 Miles 8 Miles 8 Miles 8 Miles 5 Miles 8 Miles 8 Miles 8 Miles 8 Miles 8 Miles 8 Miles 8 Miles 5 Miles 8 Miles 8 Miles 8 Miles 5 Miles
WATER TEMPS. 81° F 81° F 84° F 84° F 83° F 83° F 84° F 87° F 80° F 82° F 80° F 80° F 83° F 83° F 85° F 85° F 84° F 84° F 84° F 84° F 83° F 82° F 84° F 84° F 82° F 82° F