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  • Administrator suggests airline would collapse if the appeal court allows former workers and other creditors to sue the company

Administrator suggests airline would collapse if the appeal court allows former workers and other creditors to sue the company

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A group of former Barbadian LIAT pilots is pleading with Prime Minister Mia Mottley to urgently intervene to help resolve their longstanding pay issue even as the airline claims it will collapse if the Antigua Court of Appeal allows the ex-employees to sue the company for money owed. CLICK HERE TO JOIN OUR WHATSAPP GROUP.

A terminated Bajan pilot, who is part of a group of 10 claimants seeking access to the courts in St Johns to carry forward a case requesting severance and other compensation, said on Tuesday it is time Prime Minister Mottley steps up and rescues them once and for all.

“We continue as Bajans, as Barbadian citizens that hold ID cards and passports, to reach out to our honourable Prime Minister Mia Mottley, to intervene in this matter and to do right by us,” the former LIAT pilot who preferred not to be named, told Barbados TODAY.

The claimants, who comprise ex-pilots from several other Caribbean countries, are preparing for a legal battle in the Eastern Caribbean Court of Appeal in St Johns on June 28.

That is when the court will hear the appeal lodged last month by the government-appointed administrator of the airline Cleveland Seaforth who is asking the appellate tribunal to stay the execution of an earlier High Court decision, which ruled as unconstitutional, an initial court judgment that blocked anyone from suing LIAT for outstanding monies.

“We are opposing the application, but at the end of the day, I just want the point to be made, that here it is, they [LIAT] have sent home all of these people. We are at the weakest point in most of our lives and the government of Antigua is using taxpayers’ dollars to fight the small man, the employee, from being able to have his right to go to court, to be heard…to determine whether or not he becomes a creditor. To me, that is dangerous,” the distraught terminated pilot argued.

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But in his affidavit that supports the airline’s appeal, Seaforth warned that if the appellate judges turn down its application for a stay, the decision would spell the death knell for LIAT.

“Without a stay of execution of judgment, the decision of the High Court will open up the flood gates for claims or litigation and undermine the attempt to reorganise the airline,” Seaforth submitted in his affidavit.

“This may or will lead to the complete collapse of the airline and the jobs currently in play,” the administrator warned.

He contended that it will also have a serious negative impact on the government’s efforts to save the company, jobs and generate revenue and ensure the continuation of its business.

“I will also have great difficulty in executing my duties under the Act, in that I will have to spend a great deal of time navigating claims or litigation, which may ultimately defeat the re-organisation objectives under the Act,” Seaforth stated.

He has also told the Court of Appeal that LIAT is of great national and public importance to Antigua and Barbuda, as it contributes significantly to the economy

“LIAT is of great national and public importance to Antigua and Barbuda, as it contributes significantly to the economy.

“It is a matter of public interest that the stay should remain in place. If the stay is lifted and the several claimants are permitted to pursue their claims against LIAT (1974) Ltd and enforce a judgment, then this will result in numerous other creditors filing claims before the High Court of Justice and the Industrial Court,” he declared

“This will certainly affect the financial stability of LIAT (1974) Ltd., its ability to operate and to make payments to current employees which will result in the ruin of the institution and lead to exponential litigation costs on the resources of LIAT (19740 Ltd,” Seaforth added.

The administrator has pointed to a series of claims against the airline including that of the 10 claimants in Antigua who are seeking judgment of EC$5 million and a class-action suit by ex-employees in Grenada who are trying to enforce a judgment for EC$2 million.

“If the stay of execution of judgment is not granted, then LIAT (1974) Ltd. may be required to pay over a judgment sum to the respondents in Antigua and possibly across the region without any likelihood of the sums being returned if the appeal is successful,” Seaforth argued in his affidavit.

Hundreds of ex-LIAT employees are owed about EC$80 million (US$30 million) in severance payments after being sent home some two years ago. — Barbados TODAY

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REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL SELECTION)

 

OECS MSME Guarantee Facility Project

Loan No.: IDA-62670, IDA-62660, IDA-62640, IBRD-88830, IDA-62650

Assignment Title: Senior Operating Officer (SOO)

Reference No. KN-ECPCGC-207852-CS-INDV

 

The Governments of Antigua and Barbuda, Commonwealth of Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines have received financing in the amount of US$10 million equivalent from the World Bank towards the cost of establishing a partial credit guarantee scheme, and they intend to apply part of the proceeds to payments for goods, and consulting services to be procured under this project. 

The consultant will serve as the “Senior Operating Officer (SOO)” for the ECPCGC and should possess extensive knowledge of MSME lending with some direct experience lending to Micro, small and medium-sized businesses, knowledge of the internal control processes necessary for a lending operation and the ability to design and implement risk mitigation procedures. The ideal candidate should possess an Undergraduate Degree from a reputable college or university, preferably in Business, Accounting, Banking or related field, with a minimum of 5 years’ experience in lending, inclusive of MSME lending. The initial employment period will be for two years on a contractual basis. Renewal of the contract will be subject to a performance evaluation at the end of the contractual period. The assignment is expected to begin on September 30th, 2021.  The consultant will report directly to the Chief Executive Officer of the ECPCGC.

The detailed Terms of Reference (TOR) for the assignment can be viewed by following the attached link below. 

 

https://bit.ly/3iVannm

 

The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) now invites eligible “Consultants” to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have:

  • An Undergraduate Degree from a reputable college or university, preferably in Business, Finance, Banking or related field; and
  • Minimum of 5 years’ experience in MSME lending. Applicants should also have:
  • The ability to design and implement risk management procedures 
  • Extensive knowledge of MSME lending with some direct experience lending to small and medium-sized businesses
  • Extensive knowledge of MSME banking operations
  • Knowledge of the internal controls necessary for a lending operation and the ability to design and implement risk management procedures
  • Experience developing and presenting information in public, including responding to questions in real-time
  • Experience lending to MSMEs located in the ECCU
  • Knowledge of marketing and communicating with the MSME sector
  • Ability to draft procedures to be used in a lending operation
  • Familiarity with the mechanics of a loan guarantee program
  • Exceptional written, oral, interpersonal, and presentation skills, and
  • Proficiency in the use of Microsoft Office suite.

The attention of interested Individual Consultants is drawn to Section III, Paragraphs 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers July 2016, [revised November 2017] (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. A Consultant will be selected in accordance with the Approved Selection Method for Individual Consultants set out in the clause 7.34 of the World Bank Procurement Regulations for IPF Borrowers. 

 

Further information can be obtained at the address below during office hours 0800 to 1700 hours:

Eastern Caribbean Partial Credit Guarantee Corporation

Brid Rock, Basseterre,

St. Kitts.

Expressions of interest must be delivered in a written form by e-mail by August 11th, 2021, to [email protected]

 

For further information, please contact:

Carmen Gomez-Trigg                                                            Bernard Thomas

Chief Executive Officer                                                          Chief Financial Officer

Tel: 868-620-8144                                                                  Tel: 869-765-2385

Email: [email protected]                                          [email protected]