22 Feb 2017 15:01
This announcement contains inside information
CARIBBEAN INVESTMENT HOLDINGS LIMITED: UPDATE ON U.S. JUDGMENT AND STEPS TAKEN BY THE GOVERNMENT OF BELIZE TO PREVENT ENFORCEMENT OF JUDGMENT
Belize City, Belize, February 22, 2017 -- Caribbean Investment Holdings Limited (London - AIM: CIHL; Bermuda - CIHL)
Further to Caribbean Investment Holdings Limited's ("CHIL" or "the Company") announcement on 9 January 2017, the Board of CIHL wishes to update shareholders on the US Supreme Court judgment in favor of the Company against the Government of Belize ("GOB").
In July 2014 CIHL commenced proceedings in Washington, D.C. to enforce a London Court of International Arbitration ("LCIA") award against GOB. The LCIA award concerned damages for the breach by GOB of a settlement deed with the Company entered into in March 2005 and subsequently amended in June 2006. The deed had settled a dispute over the purchase and sale of shares in a Belizean company, and in consideration for the termination of a pending arbitration, GOB had promised, among other things, that the Company would receive certain tax treatment in Belize and that the Company would be indemnified for any breach of the GOB's warranties.
The U.S. District Court granted enforcement of the LCIA award in favor of CIHL and rejected all of GOB's challenges to the award and issued a judgment on July 1, 2015, for approximately US$27.5 million including interest, against GOB. GOB appealed that decision to the U.S. Court of Appeals for D.C. Circuit. In a decision dated May 13, 2016, the D.C. Circuit affirmed the judgment in favor of CIHL and rejected all of GOB's arguments on appeal. GOB then sought review by the United States Supreme Court. On January 9, 2017, the U.S. Supreme Court announced that it had denied the Government of Belize's petition for certiorari, rendering the judgment entered by the U.S. District Court on July 1, 2015 in favor of CIHL final and not subject to further judicial review.
On January 23, 2017, CIHL filed a motion in the U.S. District Court for the District of Columbia pursuant to 28 U.S.C. § 1610(c) seeking judicial authorization to seek enforcement of the judgment against GOB.
On January 30, 2017, the Government of Belize enacted legislation designed to criminalize the pursuit of legal action in foreign courts including the enforcement of certain foreign judgments against GOB. The specific target of the legislation was the CIHL U.S. District Court judgment.
The LCIA arbitral award underlying this judgment has also been recognized and declared enforceable by the English courts. The Caribbean Court of Justice had declined to allow the enforcement of the LCIA award on Belizean public policy grounds, strongly criticizing GOB for failing to seek the approval of the Belize National Assembly for the settlement deed.
On February 3, 2017, the Attorney General of Belize obtained an injunction from the Supreme Court of Belize restraining CIHL from enforcing the LCIA award and U.S. District Court judgment.
On February 3, 2017, CIHL filed a claim in the Belize Supreme Court to challenge the constitutionality of the Central Bank of Belize (International Immunities) Act and the Crown Proceedings (Amendment) Act passed by the Belize National Assembly.
On February 6, 2017, the U.S. District Court granted the order sought by CIHL in its motion pursuant to 28 U.S.C. § 1610(c).
On February 7, 2017, CIHL filed an application in the Belize Supreme Court to discharge the injunction and to strike out the underlying claim. The hearing of this application is scheduled to take place on February 27, 2017.
The Board of Directors of CIHL believe that the serious and aggressive legislative measures enacted in Belize and the injunction obtained by GOB are clearly designed to intimidate the Company and to prevent the enforcement by the Company of this legitimate and legally binding judgment.
The Company is presently reviewing its strategy going forward based on recent events and the advice of counsel.
For further information contact:
Caribbean Investment Holdings Limited
UK +44 (0)207 248 6700
Belize +501 227 7178
Cenkos Securities plc
Nicholas Wells +44 (0)20 739 8920
Note: This and other press releases are available at the Company's web site: http://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.