10312017 business

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TUESDAY, OCTOBER 31, 2017

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Gov’t pays ‘3x’ value of BOB’s toxic loans

GOV’T FACES $900M CLIMATE CHANGE BILL

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

B

ank of the Bahamas’ (BOB) latest bail-out has cost Bahamian taxpayers more than three times’ the net value of toxic loans purchased from the stricken BISXlisted bank.

The full-year 2017 accounts, released yesterday, reveal that the Government paid $162 million to acquire non-performing credit worth just a net $49 million as part of the bank’s August ‘rescue’.

The accounts, audited by the KPMG accounting firm, reveal that the $113 million “difference” will be written back into Bank of the Bahamas’ balance sheet as ‘special retained earnings’, boosting its net equity and helping to largely erase a $140.498 million accumulated deficit.

Explaining the implications of BOB’s most recent bail-out, the financials said: “A portfolio of non-performing loans with principal amount of $131 million, and accrued (unpaid) interest receivable of $31 million, with a total net book value of approximately $49 million was derecognised. “$162 million in unsecured promissory notes [government

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* Taxpayer pays $162m for $49m ‘bad credit’ * 55% of stricken bank’s loans non-accrual * Gov’t accounts for 37% of total deposits

AN outside view of one of the Bank of the Bahamas branches. bond or IOUs] was received for these loans and was recognised as an asset.... The net difference of approximately $113 million between the Notes received and the net book value of the derecognised assets was recognised directly in equity as ‘Special Retained Earnings’, and is considered to be a part of the bank’s regulatory capital.”

The gulf between the sum paid by the Government/Bahamian taxpayers to rescue an essentially insolvent Bank of the Bahamas, and the net value of the ‘toxic’ loans acquired by the Bahamas Resolve bail-out vehicle, has never previously been disclosed.

The August 2017 transaction copied the model established by the first Bahamas Resolve ‘rescue’,

which injected $100 million worth of government paper into BOB in exchange for ‘bad’ loans worth a net $45 million.

However, the latest bail-out represents a far greater transfer of liabilities from BOB to the Bahamian taxpayer. For the sum paid by the Government is 230.6 per cent, or more than three times’ higher, than the $49 million net worth assigned to Bahamas Resolve’s latest toxic loan portfolio. The ratio for the first ‘rescue’ was just 122 per cent.

That $49 million valuation is also open to question, given that James Smith, Bahamas Resolve’s inaugural chairman, previously revealed to Tribune Business that the first $45 million portfolio was worth half that amount once all the loan security/collateral was properly assessed.

The two bail-outs are a massive transfer of liability from BOB, and

SEE PAGE 3

* BAHAMAS’ STORM VULNERABILITY ‘ACCELERATING’ * 38,000 HIT BY NATURAL DISASTERS SINCE 1970 * COASTAL PROTECTION STRUCTURES INADEQUATE

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government has estimated it faces a $900 million bill to mitigate climate change under the United Nations (UN) framework, with the Bahamas facing “accelerated vulnerability” to natural disasters.

The scale of the economic and environmental danger facing the Bahamas has been laid bare in an InterAmerican Development Bank (IDB) report on a $35 million project designed to develop a system for managing, and building resilience to, threats to this nation’s coastline.

SEE PAGE 2

FLY FISH CHIEF WARNS PORT OPERATOR TARGETS ON ‘SPECIAL INTERESTS’ CRUISE SHIP EXPANSION

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas Fly Fishing Industry Association’s (BFFIA) president yesterday accused “special interests” of pressuring the Minnis administration to repeal the sector’s recentlyenacted regulations.

Prescott Smith confirmed to Tribune Business that “a really urgent meeting” is being arranged between the Government and industry stakeholders on the matter, adding that if the legislation was repealed “there is nothing else I can fight for”.

His comments came following a statement by

* SAYS GOV’T FACING REPEAL ‘PRESSURE’ * ‘WE’VE LOST CONTROL’ IF THAT HAPPENS * SEEKS ‘URGENT MEETING’ WITH MINISTER newly-elected Progressive Liberal Party (PLP) leader, Philip Davis, who expressed concern over reports circulating in the fly fishing community that the Government plans to revoke the regulations passed by the former Christie administration.

“We advise the Government not to do so,” said Mr Davis in the statement, adding: “We urge the Government to proceed carefully, and not to proceed with the repeal of any legislation that protects fly fishing for Bahamians.”

Although repeated attempts to reach Renward Wells, minister of agriculture and marine resources, proved unsuccessful yesterday, Mr Smith confirmed that the Minister had reached out to him regarding a meeting on the issue.

“He reached out to me and said they would like to have a meeting with us,” he added. “Pressure is being put on the Government and it’s not surprising.

There are special interests that want to control this

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Nassau Container Port (NCP) yesterday said it plans to allocate $7.5 million to capital projects and debt repayment, as it eyes diversification into cruise ship services.

Michael Maura, chief executive of port operator, Arawak Port Development Company (APD), told Tribune Business that had already “expressed interest” in the Government’s plans to redevelop and upgrade the Prince George Wharf terminal.

He explained that expanding APD’s services into cruise ship operations

* APD SIGNALS ‘INTEREST’ IN PRINCE GEORGE WHARF * ALLOCATES $7.5M FOR CAPITAL WORKS, DEBT PAY-OFF * FORECASTS 2.5% TEU DROP, FOLLOWING 2017 JUMP would also help to mitigate volatility associated with the Arawak Cay-based port’s cargo volumes, the BISX-listed port operator having projected a 2.5 per cent year-over-year decline for its 2018 financial year following a record 2017.

APD’s twenty-foot equivalent (TEU) container volumes were 13.35 per cent ahead of budget for the year to end-June,

and Mr Maura said the port was also seeking to partner with Bahamas Customs and the Government to boost the latter’s revenues, crackdown on criminals and improve the import process.

Subject to government approval, the APD chief said it planned to develop a Vehicle Terminal as a

SEE PAGE 2

Cable unveils dividend restart within one year

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CABLE Bahamas expects its growth strategy to start paying off for shareholders in less than a year’s time, although it is “not fully satisfied yet” with the returns generated.

The BISX-listed communications provider told investors in its newlyreleased 2017 annual report that dividend payments, currently suspended, will resume during its 2019 financial year - which begins on July 1 next year.

Anthony Butler, Cable Bahamas’ chairman and chief executive, yesterday told Tribune Business that some shareholders - especially retail investors - needed to be patient

* ‘Not yet satisfied’ with Aliv, Florida returns * Top executive urges shareholder patience * Eyes 30-35% Aliv market share by year-end

A VIEW of the Cable Bahamas head office. and understand that the company was investing for future gain, with key initiatives still in start-up mode.

Cable Bahamas’ accounts for the 18 months to endJune 2017 revealed a $51.727 million net loss,

driven by the ‘red ink’ associated with start-up and infrastructure build-out costs incurred by the Aliv mobile operator and its Florida investments.

The Florida operations lost $27.281 million, and Aliv $55.538 million, although Cable Bahamas’ 48.25 per cent equity stake in the latter meant that itself - and its shareholders - incurred less than half that sum. Despite the $22.986 million loss suffered by Cable Bahamas’ shareholders, Mr Butler reassured

SEE PAGE 4

PAGE 2, Tuesday, October 31, 2017

THE TRIBUNE

GOV’T FACES $900M CLIMATE CHANGE BILL FROM PAGE 1

Emphasising that the Bahamas is “highly vulnerable” to hurricanes and other natural disasters, the IDB paper on the Climate-Resilient Coastal Management and Infrastructure project warned that such storms were increasing in severity and frequency. With much of the Bahamas’ key resort assets and public infrastructure located on or near the coast, it added that climate-related events posed a serious threat to this nation’s economic future and well-being.

The IDB paper added that an emphasis on “engineering solutions”, rather than ones informed by science-related analysis, meant that the Ministry of Works’ efforts to protect the Bahamian coastline were failing in several Family Island locations.

And natural tourist attractions, together with coastline defences, were being steadily eroded with the Bahamas thought to have lost more than 50 per cent of “the live coral cover of its reefs”.

“The Government of the Bahamas has recognised that future growth and diversification of its tourism-dependent economy depends on ecosystem services, maintaining biodiversity and enhancing the resilience of economic activities to coastal risks, including climate change,” the IDB paper seen by Tribune Business says.

The IDB said that “given the strategic importance of the country’s coastal zone to economic development”, the Government had “made several advances towards climate-resilient coastal management” including its embrace of the Sustainable Nassau Initiative and National Policy for the Adaptation to Climate Change.

However, the IDB said most action to-date had been “small scale”, and added: “Recently, the Government of the Bahamas estimated the cost of implementing mitigation actions related to the Nationally Determined Contribution (NDC) to the United Nations Framework

Convention on Climate Change (UNFCCC) to be over US$900 million through 2030.

“A recent IDB study indicates that the probable coastal flooding exposed area in a one-in-a-50year flood event in New Providence is projected to expand to 15 per cent by 2050 due to increasing precipitation caused by climate change. “Nationally, one metre sea level rise (SLR) would place 36 per cent of major tourism properties, 38 per cent of airports, 14 per cent of road networks and 90 per cent of sea ports at risk.”

The Bahamian economy remains highly dependent on tourism, whose $2.4 billion in direct visitor spend was equivalent to 27 per cent of total GDP in 2015, rendering this nation particularly susceptible to climate change.

“The tourism sector’s potential future growth rests predominantly on continued investments in tourism infrastructure, and the uniqueness and health of the archipelago’s coastal resources,” the IDB added.

“The Bahamas is highly vulnerable to natural hazards, including hurricanes, which put at risk both economic activities and associated public infrastructure concentrated along the coast of New Providence and several of the Family Islands.

“From 1970 to 2016, the country experienced 18 major disasters including hurricanes, affecting 38,000 citizens. Seven, or 40 per cent, of these 18 major disasters occurred in the last 10 years, signifying that impacts from disasters have increased at an accelerating rate.”

The IDB report said Hurricane Joaquin inflicted an estimated $104.8 million worth of damage when it struck the sparsely-populated southern Bahamian islands in 2015, and this was followed by $438.6 million in losses and damage when Hurricane Matthew hit New Providence and Grand Bahama one year later.

“These events underscore the socio-economic vulnerability of the Bahamas, with its small population spread in a large discontinuous

area where informal or isolated settlements, housing and basic services located along the shore are not designed in accordance to adequate building codes,” the paper added.

Warning that climate change threatens to exacerbate these problems, the IDB said: “A review of Bahamian coastal engineering structures constructed previously revealed additional issues such as lack of understanding of the impact of adjacent coastal construction and natural habitats on receding stretches of shoreline, and lack of design guidance for coastal structures under various climate change scenarios.

“Engineering solutions, such as seawalls and causeways, are failing in several locations in the Family Islands owing to lack of empirical data to inform science-based designs..... Although the Ministry of Public Works is currently building coastal engineering structures to protect roads and other public infrastructure from these risks, empirical data

and modelling on the multiple causes of flooding (tides, wave overtopping, storm surges, inland flooding) and shoreline instability are needed to design lasting solutions.”

The paper added that the degradation of coastal ecosystems was also exaggerating the Bahamas’ vulnerability, finding: “Based on available data, the country has lost over half of live coral cover of its reefs.

“Mangrove wetlands of the Bahamas are threatened by land conversion for development, and estimates in New Providence indicate a 32 per cent decline in wetlands over the last 30 years.

Throughout the Bahamas, invasive species such as casuarina (Australian Pine) cause sand dune erosion and inhibit the growth of native vegetation.

“These threats amount to losses in natural coastal protection that, increasingly, are being recognised as ‘natural infrastructure’ that, in suitable locations, has greater adaptive capacity and is often less costly than conventional solutions.”

Port operator targets cruise ship expansion FROM PAGE 1 ‘one-stop shop’ where imported automobiles could be licensed and inspected. And the proposed Cargo Inspection Facility would permit indepth examinations to take place at the port, clamping down on smuggling and tax evasion. Outlining APD’s plans to Tribune Business, Mr Maura said: “We plan to allocate approximately $7.5 million towards the retirement of debt and planned capital expenditures, with the remainder supporting cash reserves, potential new business development and shareholder dividends.”

While the APD board has yet to determine the size and timing of a dividend, Mr Maura said the port operator continued to target new business opportunities to increase earnings and shareholder value.

“The Ministry of Tourism and the Ministry of Transport have expressed a desire to make improvements to Prince George Wharf,” he told this newspaper. “APD has expressed its interest in this project and await project details.

“By diversifying APD’s business, and expanding APD operations and services to the cruise industry, this would serve to reduce the impact on financial

performance resulting from the occasional decline in cargo imports.

“The addition of a new revenue stream to APD also serves to distribute APD’s cost of operations across both cargo and cruise, which potentially reduces the tariff on groceries and other core imports.

This serves to lower the landed cost of goods in New Providence.”

Mr Maura disclosed that APD’s TEU import volumes for the 12 months to end-June 2017 exceeded projections by more than 8,000, coming in at 70,277 compared to 62,000. They were well ahead of 2016’s 61,779.

“The increase in cargo volumes were driven primarily by Hurricane Joaquin and Matthewrelated construction materials; vehicle imports of 16,864 compared to budget of 12,192 and prior year of 11,975,” Mr Maura said. “The remobilisation of the Baha Mar project also contributed to the increase over prior year. APD budgeted conservatively for 2017 due to little GDP growth and the stalled Baha Mar project. As a practice we do not budget for post-hurricane cargo volumes.”

Adopting a conservative approach to APD’s current financial year, Mr Maura added: “As we look

at 2018, we have budgeted import TEUs of 68,500, which represents a 2.5 per cent reduction in volumes.

We will also not benefit from the Baha Mar bad debt and extraordinary port storage enjoyed in 2017.”

Besides Prince George Wharf, Mr Maura said the port operator was also examining projects closer to home. “Subject to Government approval and finalising the details, the company will develop a Vehicle Terminal to include Bahamas Customs and Department of Road Traffic offices to provide the import business community - and public - with the ability to both clear and

NOTICE

NOTICE is hereby given that JIMMY BELFORT of Marsh Harbour, Abaco, The 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 31st day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

Legal Notice

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

SUNRAY INVESTMENTS LTD. In Voluntary liquidation

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). SUNRAY INVESTMENTS LTD., is in Dissolution.”

The date of commencement of dissolution is the 27th day of October, 2017.

Roshan A Noronha, P.O. Box SS5382, #21 Montaque Heights, Nassau, Bahamas Liquidator

license vehicles at the port as a ‘one-stop-shop’,” he explained.

“Subject to government approval and finalising the details, as part Bahamas Customs’ on-going efforts to combat criminal activities, APD will construct a Cargo Inspection Facility. This facility will serve as a substantive component of Bahamas Customs’ enhanced risk management programme.

“Freight containers, vehicles and general cargo designated for a comprehensive examination will be processed by this facility while remaining at the Nassau Container Port,” Mr Maura continued.

“It is contemplated that this facility will contain modern contraband detection equipment. The introduction of this facility to the trade process is intended to eliminate existing delays and procedure for recognised firms which have a history of compliance and transparency.

“The investments in Customs and Road Traffic facilities directly influence legitimate trade and enhance Customs’ contraband detection efforts.

Combating illegal trade directly supports legitimate business and economic growth.”

Turning to APD’s financial performance, Mr Maura said the company beat 2017 budget expectations by 15.2 per cent and 8.1 per cent, respectively.

“Total revenues were $32.5 million compared to budget of $28.2 million and prior year of $27.1 million, driven by the increase in import volumes and unbudgeted Baha Mar storage-related revenues of $700,000,” Mr Maura said.

“Total expenses for fiscal year-ended 2017 were $15.9 million compared to budget of $17.3 million, and prior year of $17.2 million. The reduction in expense compared to prior year was in large part due to bad debt recovery of $700,000, directly related to warehouse rent collected from Baha Mar, and expense reductions compared to prior year of approximately $370,000 in repairs and maintenance.”

Mr Maura said the latter primarily related to the Arawak Cay port’s cranes, plus a fall in legal and professional fees of about $320,000. “In 2016 we would have incurred consultancy expenses relative to our company ICT systems, legal work relating to Baha Mar, and tax advisory services,” he explained.

The APD chief also confirmed that the port operator “does not charge for hurricane relief items shipped to Nassau [that are] consigned to NEMA and other qualifying relief organisations. The revenues derived from hurricanerelated imports would have been driven primarily by insurance settlements”.

THE TRIBUNE

Tuesday, October 31, 2017, PAGE 3

MORTON SALT RESUMES ‘LIMITED OPERATIONS’ REALTOR PARTNERS WITH FLORIDA AIRPLANE FIRM

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net MORTON Salt, Inagua’s largest employer, has resumed “limited operations” following the damage inflicted by Hurricane Irma, Tribune Business was told yesterday.

The company, in a statement via its spokesman, Paul Jackiewicz, said: “The Morton Bahamas production site on the island of Inagua has resumed limited operations following the impact of Hurricane Irma last month. “At this time, we cannot provide

FROM PAGE 1 its shareholders, to the Bahamian taxpayer, given that it is the Government through Bahamas Resolve - that now has responsibility for collecting on these ‘toxic’ loans - a process that could last decades.

The Government is also redeeming the $100 million worth of bonds injected into BOB through the first Bahamas Resolve transaction, a process that will be completed via four payouts this fiscal year.

This raises the possibility that the Government will, at some stage, also have to redeem the $162 million involved in the latest transaction and replace them with hard cash - something that represents the most significant potential drain for taxpayers.

But BOB’s financial statements for the year to end-June 2017 reveal that the Minnis administration had little choice but to effect a second ‘bail-out’, given that an astonishing 55 per cent - more than half of the bank’s loan portfolio was rated non-performing.

The bank’s continued deterioration was highlighted by the fact that non-performing loans, as a percentage of BOB’s total credit portfolio, had increased from 46.07 per cent at year-end 2016 to 55.11 per cent just one year later. This meant that $246.973 million, out of a net $448.125 million portfolio, was 90 days or more past due at end-June 2017.

In particular, 79.4 per cent or $44.038 million of BOB’s $55.487 million commercial mortgage portfolio was deemed ‘impaired’ at the year-end date.

Some 57.8 per cent, or $103.494 million of BOB’s $179.101 million commercial loan and overdraft segment, was also branded as ‘non-performing’ at yearend 2017.

The scale of the latest Bahamas Resolve transaction was meant to cure this, and BOB’s continued noncompliance with four out of five key regulatory capital ratios set by the Central Bank of the Bahamas.

“It is expected that this transaction will restore all of the bank’s regulatory capital ratios to compliance,” BOB’s 2017 financial statements said of the latest ‘bail-out’.

“As of June 30, 2017, and 2016, the bank was not in compliance with regulatory minimum requirements for

a precise date as to when the site will return to full capacity because of the unique logistical challenges and other variables. Our team, as well as engineering consultants, have had a consistent presence at the site throughout the process to ensure a safe and timely return to full operations.”

Morton Salt, a subsidiary of the German K&S Group, which acquired the company in 2009, had acknowledged there was some “structural damage” as a result of Hurricane Irma. The company, which employs 145 people on Inagua, had shut down its plant on September 6

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

Their time is limited and our time is limited,” he explained.

“When you’re a top CEO you don’t have three or four days to fly in, stay at a hotel and look at multiple properties.

“We wanted to address that and give our clients the ability to see multiple properties across the Bahamas in a day.”

He added: “C.A. Christie Real Estate, in conjunction with Tropic Ocean Airways, will be providing a new exclusive service to our clients that will allow them to explore luxury real estate options throughout the Bahamas in style.

“High net worth individuals will be able to hop on a seaplane from Florida, enjoy a customised luxury real estate experience and be back in Florida in time for dinner.”

Tropic Ocean Airways, which is based in Fort Lauderdale, was founded by navy fighter pilot, Rob Ceravolo.

The company currently has scheduled service into Bimini, Great Harbour Cay, Marsh Harbour and Treasure Cay via a fleet of 11 aircraft and 100 employees. In addition, there are plans to expand the business to be announced imminently.

Gov’t pays ‘3x’ value of BOB’s toxic loans

a going concern. “Management does not expect that the continued operating losses or regulatory capital deficiencies will impact the bank’s continuing ability to operate as a going concern.

Our opinion is not modified in respect of this matter.”

In a separate development, Tribune Business understands that Anthony Allen, formerly Scotiabank’s top Bahamian executive, has resigned from his post as BOB’s deputy chairman for unspecified “personal reasons”.

the following [four] ratios primarily due to the significant net losses recorded by the bank and the consequential accumulated deficit position.

“The Central Bank is aware of these regulatory deficiencies, and has imposed certain supervisory interventions on the bank. The bank continues to report to the Central Bank on its progress. Effective September 30, 2016, the Central Bank increased the minimum capital requirement for the ratio on total capital to total risk weighted assets to 18 per cent for the bank.”

as the storm approached.

Jennifer Brown, head of the Bahamas Industrial Manufacturers and Allied Workers Union (BIMAWU), told Tribune Business that most employees were still on a three-day work week. “It’s still a three-day work week, but some persons are on four days as they try to get the plant back up and running,” she said. “The maintenance people are working four days a week. They are moving salt, not the usual way but they are getting it on the ship. It looks like by the end of November things may be back to full operation.”

The extent to which the Government continues to prop up BOB is further highlighted by the fact that, at end-June 2017, the Public Treasury and other government agencies accounted for 37.4 per cent - more than one-third - of the bank’s total deposits.

The impact from the Bahamas Resolve transaction was not included in BOB’s 2017 financials, given that the ‘rescue’ occurred two months after its year-end. The BISXlisted bank’s net loss almost doubled, from $23.296 million in 2016 to $46.3 million, almost entirely due to

A BAHAMIAN real estate firm is teaming up with a Florida-based seaplane outfit to allow clients to explore options throughout the Bahamas “in style”.

Gavin Christie, C.A. Christie Real Estate’s managing partner, yesterday told Tribune Business the firm was teaming up with Fort Lauderdale-based Tropic Ocean Airways to offer the seaplane service to its clients.

“We often deal with very high net worth individuals.

a more than-100 per cent increase in loan loss provisions. These grew from $24.499 million to $51.957 million for the year to endJune 2017, highlighting the extraordinary weakness of BOB’s credit portfolio.

KPMG, pre-bail-out, warned shareholders that there was a “material uncertainty” over BOB’s ability to continue as a ‘going concern’ given the heavy, consistent losses incurred by the bank since

its 2014 financial year. “The bank has experienced continuing operating losses for the last several years, and was also non-compliant with certain of its externally imposed regulatory capital requirements as at June 30, 2017, and 2016,” KPMG said. “These events and conditions, along with other matters as set forth, indicate that a material uncertainty exists that may cast significant doubt on the bank’s ability to continue as

NOTICE

LAUDERDALE HOLDINGS CORP. Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas.

Registration Number 159839 B (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 17th day of October 2017.

Articles of Dissolution have been duly registered by the Registrar.

The Liquidator is Elba Bethancourt, Villa Lucre, Residencial Boulevard Hill Calle Peregina, No. Ep-29, Panama, Republic of Panama. Persons having a Claim against the above-named Company are required on or before the 31st day of October, 2017 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.

Dated this 27th day of October, 2017 Elba Bethancourt Liquidator NOTICE

Noelle Global Limited Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas.

Registration Number 144869 B (In Voluntary Liquidation) Notice is hereby given that the above-named Company is in dissolution, commencing on the 17th day of October 2017.

Articles of Dissolution have been duly registered by the Registrar.

The Liquidator is Elba Bethancourt, Villa Lucre, Residencial Boulevard Hill Calle Peregina, No. Ep-29, Panama, Republic of Panama. Persons having a Claim against the above-named Company are required on or before the 31st day of October, 2017 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.

Dated this 27th day of October, 2017 Elba Bethancourt Liquidator

Cadastral Surveying, Its Importance to Private & Public Lenders & Land Registration Within The Commonwealth of the Bahamas The purpose of this report is to assist with providing clarity as to what Cadastral (or Boundary) Surveying represents and its pertinence with regards to public and private lending institutions and in some instances, individual lenders. Also, the advent of land registration for lenders as a norm will be discussed.

Cadastral (Boundary) Surveying & Its Importance Boundary surveying, for the purpose of this discussion, represents an exercise in the livery of seisin. This is the symbolic “walking of the bounds” of a property before the grantor conveys title deeds to the grantee. The boundary survey plan (most basically) will comprise of bearings and distances and a square footage that will be agreed upon for sale. The survey plan will also show where boundary monuments have been established around the perimeter.

The importance of a current boundary survey for a land transaction is to ensure that there are no encroachments on the property. Encroachments usually are fence lines, walls or buildings that are in incorrect possession; this can either be accidental or intentional (the act of squatting).

Other factors that may hinder a land sale can be the excavation of all or a portion of the property and in the case of waterfront properties, the issue of erosion which can occur over time or rapidly in the case of a storm. Therefore, attaching old survey plans to new mortgages can place (and have placed in enough instances) lenders at financial and legal disadvantages as the current conditions of the property are not accurately reflected.

The value of pertinent information to execute boundary surveys cannot be understated. Quite often, visits are made to the Department of Lands & Surveys, the Subdivision Department and Department of Physical Planning (both departments residing within the Ministry of Public Works & Urban Development), Land Surveying companies, the Real Property Tax Department, Department of Archives, the Registrar General’s Office, the Supreme Court Registry, private registries, Real Estate companies and to a lesser extent attorneys’ offices to find what is needed.

The lack of ease of access to information is costly and time consuming as no comprehensive land registry currently exists.

Land Registration Currently, there is no statute law within the Commonwealth of the Bahamas stating that all land transactions are to be recorded in the Office of the Registrar General, only the fact that the first to record his or her title documents has the greater claim to title (that is assuming the recorded title documents are valid).

With the land tenure system in its present state, one can sympathize with how difficult it can be to assess a proper Chain of title (history of ownership) for a property once it has left the possession of the Crown (Government land) to then be privately held. In cases where the “chain of ownership” has been broken, the search for valid claims are often extended from the public registries to that of the Catholic, Anglican and Mormon registries and those abroad. Title searches of this nature can take months to complete and even then where a good root of title can be established, occupation is still the strongest form of title and individuals can find themselves embroiled in a legal battle over ownership which is time consuming and expensive.

Referring again to the importance of recorded land transactions, lenders have also found themselves financially exposed by not having mortgages promptly recorded. In several cases, borrowers have taken a second mortgage over the property and had that transaction recorded thereby leaving the primary lender in the second position as mortgagee. Other financial losses could include properties being quieted and the fact that title deeds for mortgages were invalid.

The registration of the land by having the boundary surveys to all mortgaged, purchased or granted parcels recorded at the Department of Lands & Surveys is one the most critical components. The surveys are tied into the National Grid System where coordinates are assigned to every recorded plan. The history of the parcel is also attained as it is mapped showing the original Crown Grant that it was derived from thereby establishing its root to title.

The National Grid System is maintained by the Department of Lands & Surveys (D.L.S) and was established in the early 1960’s as a part of the aerial mapping resource project that included the entire archipelago. The control stations (monuments that have assigned coordinates) still function well to this day and with the use of Global Positioning Systems (G.P.S.), it is considerably easier to tie boundary surveys to the National Grid.

Once all of the boundary survey plans for the purchased or granted parcels have been recorded at D.L.S., they are all compiled in a system known as the cadastre and a tax identification number is assigned for each parcel. Historically, the Real Property Tax Department is responsible for the maintenance of the national cadastre, however, there have been many occasions where this department has been unaware of new subdivisions or the creation of new parcels of land because there is little land registration structure.

As land is one of the most crucial components in collateralization in this country, coupled with the fact that approximately over three and one-half billion dollars of real estate has been sold in the Bahamas within the past five years, one can easily see the importance of an efficiently operating land tenure system.

The Bahamas Association of Land Surveyors (B.A.L.S.) will be hosting the conference “Prelude to Land Registration and Management” on November 2nd, 2017 at the British Colonial Hilton Hotel. All interested persons are encouraged to attend.

We would like to especially thank our title sponsor, COMPUTITLE LTD. TO REGISTER FOR THIS EVENT, PLEASE LOG ON THE LINK BELOW! https://goo.gl/forms/jFIUWospmycsaZwb2

PAGE 4, Tuesday, October 31, 2017

THE TRIBUNE

Cable unveils dividend restart within one year FROM PAGE 1 investors that the BISXlisted operator was on track with the execution of its 2014 growth strategy.

“We’re doing fine,” he told Tribune Business. “We are where we are. A lot of people don’t understand the start-up [stage], and are looking for the returns.

We stopped the dividend to conserve the cash, and are using and investing it wisely.”

Cable Bahamas’ losses over the past two financial years have seemingly unnerved some shareholders, with the dividend suspension exacerbating their concerns.

This was alluded to by Gary Kain, Cable Bahamas’ chairman, in the annual report where he said that the company’s share price had “experience some unusual fluctuation” over the past 18 months.

“This was in large part due to individual

shareholders who suffered hurricane damages liquidating their position, and concerns over the entry of competition in the video sector [BTC],” Mr Kain suggested.

However, dividend suspensions are relatively routine for companies seeking to conserve capital for investment opportunities assessed as generating even greater future returns.

With Aliv and the Florida operations now starting to emerge from start-up mode, the key now is for Cable Bahamas to execute and ensure increased revenue drops to the bottom line.

“We’re executing the strategy we put in place in 2014, when the plan was to move into the mobile business,” Mr Butler told Tribune Business. “We’re happy with the execution of the plan. Florida is doing well, Cable Bahamas is continuing to generate earnings, and Aliv is growing market share.”

FLY FISH FROM PAGE 1

industry. If the Government does anything to the legislation other than strengthen it we have lost control of this country.

“We are waiting on a date now for the meeting. It’s a really urgent meeting.

“If this legislation is reversed there is nothing else I can fight for. That would be 24 years of

Mr Kain said the BISXlisted communications provider has yet to achieve its investment return targets, but indicated it was making progress by announcing a timeline for the resumption of dividend payments.

“We are confident in our strategic direction, and our EBITDA growth continues to improve,” he wrote in the annual report. “However, we are not yet fully satisfied by the returns that we are achieving on the substantial investments that the group has made in recent years.

“However, overall, the Board remains confident of the group’s cash generation ability, and its forecast return on capital. This confidence will be reflected in our imminent review of the dividend policy, which was put on hold in July 2016 to preserve cash during initial stages of the mobile build-out and the fixedline expansion programme in Florida. The company recently announced that

trying to fight for something for Bahamians, for our children and grand children.”

The fly fishing regulations introduced back in January require anglers over the age of 12, and those who wish to fish in the flats, to apply for a personal angler’s license and pay a set fee.

Non-Bahamians will have to pay $15 for a daily license; $20 for a weekly license; $30 for a monthly license; and $60 for an annual license.

NOTICE

NOTICE is hereby given that TECHELET POLYCARPE of #27 Durham St., off Mt. Royal Ave., New Providence, The 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 twentyeight days from the 24th day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

these dividend payments will resume in financial year 2019.”

Cable Bahamas, which has management and Board control at Aliv, said it was targeting a 30-35 per cent market share for the Bahamas’ second mobile operator by year-end 2017.

Suggesting that it had obtained a 20 per cent share by end-June 2017, with 78,000 subscribers, Cable Bahamas said Aliv had produced almost $13 million in revenues during the seven months following its November 2016 launch.

“In less than eight months of operations, ALIV has completed an extremely successful finance capital fundraise, which resulted in $60 million of note payable debt financing for the company,” Cable Bahamas said. “The offer was 100 per cent oversubscribed and fully financed.

“Therefore, coupled with the shareholders’ investment of $135 million, and $35 million from vendor

The regulations also require a foreign vessel wishing to fish in the Bahamian flats to obtain the usual sports fishing permit, with each person on the vessel also holding a personal license.

The regulations ban commercial fishing in the flats, and anglers are only allowed to catch and release when catching bonefish, permit, snook, cobia and tarpon.

A Conservation Fund for the management and protection of the flats and fisheries resources in

the Bahamas is to be established.

As reported by Tribune Business, when the proposed regulations for the estimated $140 million industry were first unveiled, they created considerable controversy and effectively a divide between the 400 local guides and the lodge owners. The latter were more opposed to the proposals, while there was concern that the regulations, as initially drafted, gave the impression that the Bahamas was being too protectionist and

NOTICE

NOTICE is hereby given that STEVE CHERY of Hope Garden, Nassau Village, P.O. Box N-3391, New Providence, The 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 31st day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,074.56 | CHG -2.16 | %CHG -0.10 | YTD 136.35 | YTD% 7.03 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.96 0.16 5.83 8.60 6.30 5.30 14.49 2.59 1.60 6.00 10.05 11.00 4.50 7.25 12.51 11.00

52WK LOW 4.06 17.43 8.19 3.50 1.25 0.12 3.70 8.40 5.83 3.15 9.00 2.18 1.40 5.80 8.78 5.75 3.35 6.61 11.94 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 105.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.10 3.98 1.97 176.30 149.66 1.50 1.67 1.58 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.44 1.63 1.55 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.31 17.43 9.09 3.65 1.25 0.15 3.70 8.60 6.10 4.97 9.00 2.54 1.51 6.00 10.00 6.90 4.49 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00 LAST SALE 100.00 100.00 100.00 108.90 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.31 17.43 9.09 3.65 1.25 0.15 3.70 8.60 6.10 4.95 9.00 2.50 1.51 6.00 10.00 6.90 4.50 7.01 12.50 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.02 0.00 -0.04 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

108.87 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

19,982 6,375 100

900 3,000 350

VOLUME

NAV 2.10 3.98 1.97 176.30 149.66 1.51 1.64 1.59 1.09 6.97 8.00 6.25 10.96 11.60 10.08

EPS$ 0.444 0.932 -0.223 0.540 -1.373 0.000 -0.857 0.611 0.574 0.196 0.582 0.102 0.392 1.217 0.743 0.575 0.310 -0.668 0.543 0.000

DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.000 0.300 0.220 0.120 0.570 0.060 0.050 0.290 0.450 0.000 0.113 0.140 0.600 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 9.7 18.7 N/M 6.8 N/M N/M -4.3 14.1 10.6 25.3 15.5 24.5 3.9 4.9 13.5 12.0 14.5 -10.5 23.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 1.86% 5.74% 0.00% 5.75% 0.00% 0.00% 0.00% 3.49% 3.61% 2.42% 6.33% 2.40% 3.31% 4.83% 4.50% 0.00% 2.51% 2.00% 4.80% 0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 3.29% 4.48% 1.69% 2.22% 1.77% 2.42% 4.66% 3.89% 5.58% 6.65% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

increase of 33,656 subscribers in the four-year period).

“Residential revenue contributed approximately $53 million or 63 per cent of total revenue, and acquired 5,483 net new subscribers in 2017, representing a 17 per cent growth over the past 18 months. We expect to significantly grow over the next five years in residential and commercial revenue.”

Cable Bahamas said its Hurricane Matthew recovery costs totalled $8 million, as a result of having to restore communications services to 60,000 homes and businesses, with more than 200,000 phone calls fielded.

“A significant part of the Grand Bahama outside plant network, which sustained the most damage, was rebuilt to the tune of nearly $6 million. An additional $2 million in cost was expensed during the financial year as a result of the storm not relating to the rebuild,” the annual report disclosed.

restrictive, and anti-foreign, while tying up access by foreign anglers in bureaucracy and red tape, not to mention increased costs.

Bahamian lodge owners recently complained that the bulk of this nation’s fly fishing business was going to foreign-owned lodges, while Kerry Fountain, the Bahamas Out Island Promotion Board’s executive director, said anglers were being frustrated by an inability to apply and pay for their licenses online.

NOTICE

NOTICE is hereby given that JOSEPH JOHNSON of Carmichael Road, P.O.Box N-10745, New Providence, The 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 24th day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

MARKET REPORT MONDAY, 30 OCTOBER 2017

partner funding, Aliv has a total of $230 million in capital funding. This greatly contributes to our financial stability within the market.

“Our network and investments of $144 million is comprised of infrastructure and equipment for our Family Island roll-out, which offers the platform for the most advanced network and supporting systems in the country.”

Emphasising Florida’s earnings and diversification potential, Cable Bahamas said its wholly-owned Summit Broadband affiliate had added 5,483 residential customers over the 18 months to end-June 2017.

“Summit continued to see growth as revenue increased by 71 per cent to reach $84 million,” Cable Bahamas said.

“Over the last four years, total revenue grew by approximately $77 million or over 1,043 per cent. The largest contributing factors to this growth were revenues from residential subscribers (an

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

NOTICE is hereby given that KENDAL MICHEL of Marsh Harbour, Abaco, The 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 31st day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

Legal Notice

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

WILSHIRE INVESTMENTS INTERNATIONAL LTD. In Voluntary liquidation

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). WILSHIRE INVESTMENTS INTERNATIONAL LTD., is in Dissolution.”

The date of commencement of dissolution is the 27th day of October, 2017.

Roshan A Noronha, P.O. Box SS5382, #21 Montaque Heights, Nassau, Bahamas Liquidator

Legal Notice

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

MANHATTAN INVESTMENTS HOLDING LTD. In Voluntary liquidation

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). MANHATTAN INVESTMENTS HOLDING LTD., is in Dissolution.”

The date of commencement of dissolution is the 27th day of October, 2017.

Roshan A Noronha, P.O. Box SS5382, #21 Montaque Heights, Nassau, Bahamas Liquidator