BRIDGETOWN, Barbados – The shareholders of LIAT (1974) Ltd. and Caribbean Star Airlines Ltd. announced Friday, May 18th that they have set June 15, 2007 for the merger to be finalized and the airlines to be integrated.
The announcement was made following a meeting held Friday, May 18 in Barbados between the Prime Ministers of Antigua & Barbuda and Barbados, shareholders of LIAT, and Sir R. Allen Stanford, sole shareholder of Caribbean Star Airlines.
Merger negotiations had been ongoing since October 2006.
Under terms of a revised agreement, the Stanford Financial Group will lend the LIAT shareholder governments a total of US$25 million for the purpose of providing a bridge loan until LIAT shareholder governments finalize a loan by the Caribbean Development Bank.
The loan from the Caribbean Development Bank is proposed to be for a total of US$60 million. The bridge loan from Stanford Financial Group will be for the purpose of settling LIAT’s outstanding financial liabilities and to provide working capital until the Caribbean Development Bank loan has been funded at which time the bridge loan will be repaid. The Caribbean Development Bank loan is subject to approval by the bank’s Board of Directors and the island parliaments.
The ownership of the new airline will remain as agreed upon in March: Caribbean shareholder governments and other LIAT shareholders – 65% and Stanford Financial Group – 35%.
In addition to the key shareholders of both airlines, other officials present at today’s meeting included LIAT Chairman Dr. Jean Holder, LIAT CEO Mark Darby, Caribbean Star President & CEO Skip Barnette, and other senior officials.
St. Vincent and the Grenadines Prime Minister Gonsalves was unable to attend the meeting as he is recovering after a serious automobile accident.
