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Aug 18, 2011

Sugar Industries Employees Trust say shares are not for sale

The fluidity of a situation to change is well known to the Belize Sugar Industries. Although the factory has been diligently working to satisfy local market and cross border trade, the income has had little to stave off its own stormy weather in the form of a twenty million dollars debt to ING and millions more to other creditors.  And according to its press release sent today “We are also appreciative of Government’s continuing support to B.S.I.’s efforts in seeking a long term solution to the major financial challenges before the deadline for expiry of existing facilities on September thirtieth 2011.” The trust, which has been mostly quiet, now says that the BEH Board has met recently on several occasions to discuss the implications of B.S.I.’s financial position and also the Atlántida proposal.  The trust says it is conscious of the extremely difficult financial situation in which B.S.I. finds itself and as the majority shareholder, is not a source of new equity finance. So that would sound like the Trust is ready to sell its shares, right? Not so. The release goes on to say “BEH hereby clarifies that the BEH Trust shares are not being sold and states that as the current majority shareholder it is not in a position to function as a provider of risk capital over the longer term.” So the release sent by the directors admits that B.S.I. doesn’t have the cash, while the thunder of a September thirtieth deadline for debt commitment is on the horizon.  News Five attempted to get an interview from B.S.I. but the company declined.

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2 Responses for “Sugar Industries Employees Trust say shares are not for sale”

  1. Sugar says:

    The protectors of the Trust have tried to clarify matters and U still balls it up. You are confusing the directors of the Trust with BSI….they are 2 completely separate entities and maybe you shud go read the press release just one more time.

  2. Ricky Malthus says:

    The solution to the cane farmers and BSI workers buying out BSI is staring you all right in your faces. Is it possible to reschedule the ING loan and assume it; then pool all the collaterals of cane farmers to obtain a new loan which will debt service both the reschedule loan and the new loan such that all payments are no greater than 40 percent of gross revenues. This means that that the new restructured Caneros Sugar MFG. company must be supremely cost conscious and must have excellent financial practitioners who will safeguard and increase all assets and promote positive cashflows because of increasing production both for domestic market and export markets. If the caneros are up to it , the can increase production 100 percent over five years by increasing acreages of production and improved available technologies and introduction of improved operations management along the lines of so called “young Turks”. More to come.

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