12 Jan 2018 15:35
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Caribbean Investment Holdings Limited
12 January 2018
THE BELIZE BANK LIMITED TAKES STEPS AGAINST THE GOVERNMENT OF BELIZE TO ENFORCE THE CARIBBEAN COURT OF JUSTICE DECISION CONCERNING THE LCIA AWARD
ON 23 November 2017 Caribbean Investment Holdings Limited (London - AIM: CIHL; Bermuda - BSX: CIHL) (the "Company") announced that on 22 November 2017 the Caribbean Court of Justice (the "CCJ") (the final court of appeal for Belize) handed down its judgment in a case brought by its banking subsidiary, The Belize Bank Limited (the "Bank") against the Government of Belize concerning the enforcement of a London Court of International Arbitration (the "LCIA") arbitral award.
The arbitral award was issued by the LCIA on 16 January 2013 (the "LCIA Award") and directed the Government to pay BZ$36,895,509.46 (US$18,447,754.73) (as at 7 September 2012) plus interest at 17% compounded on a monthly basis from 8 September 2012 until the date of payment plus costs. This debt arose out of a loan note issued by the Government to the Bank on 23 March 2007 for the sum of BZ$33,545,820 (US$16,772,910), having defaulted on guarantees it had given to re-pay the Bank for loans advanced to Belize healthcare provider, Universal Health Services.
The CCJ granted permission to the Bank to enforce the LCIA Award in the same manner as a judgment or order of the Supreme Court to the same effect. It also ordered that the Bank have its costs for the appeal before the CCJ as well as before the courts below.
Twenty-one days after the CCJ granted permission, the Bank was entitled to apply to the CCJ under section 25 of the Crown Proceedings Act for a certificate certifying the amounts payable to the Bank by the Government. The Bank made this application on 15 December 2017.
On 3 January, 2018 the CCJ issued the Certificate certifying that the amount payable to the Bank by the Government under the LCIA Award is BZ$91,596,013.22 (US$45,798,006.61) as at 15 December, 2017 with interest accruing at 17% compounded monthly until the date of payment and costs of £536, 817.71 awarded to the Bank. The Certificate was served on the Attorney General, the Minister of Finance and the Financial Secretary on 4 January, 2018.
As at the date of issuance of the Certificate on 3 January, 2018, the outstanding balance owed to the Bank by the Government under the Award stood at US$46.2 Million representing a US$13.9 Million increase in value from the balance previously reported in the Company's Interim Results as at September 30, 2017 of US$32.3 Million. The US$13.9 Million increase consists of additional interest capitalized of US$2.0 Million as well as the reversal of impairment provisions of US$11.9 Million.
The Company takes the view that the Bank having completed the certification process, has taken all necessary steps to recover the sums due and owing to it from the Government and that the arbitral debt is final and binding and an unconditional receivable asset that the Government is obliged to immediately pay.
For further information contact:
Caribbean Investment Holdings Limited
UK +44 (0)20 7248 6700
Belize +501 227 7178
Cenkos Securities plc
Nicholas Wells +44 (0)20 7397 8920
Note: This and other press releases are available at the Company's web site: www.cihltd.co.
Background Information
Caribbean Investment Holdings Limited (CIHL) is a parent holding company with no independent business operations or assets other than its investments in its subsidiaries, intercompany balances and holdings of cash and cash equivalents. CIHL's businesses are conducted through its subsidiaries. The Belize Bank Limited (BBL) is incorporated and based in Belize and focuses on the provision of financial services and lending to domestic clients. Belize Bank International Limited is incorporated and based in Belize and focuses on the provision of financial services and lending to international clients. CIHL also owns an international corporate services business based in Belize, which operates as Belize Corporate Services Limited. Within Belize, BBL is the largest, full service commercial and retail banking operation with a head office in Belize City and eleven branches extended into each of the six districts of Belize. The principal operations of BBL are commercial lending, consumer lending, deposit taking and related banking activities.
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