Guyana-born Cleveland Seaforth, Chairman of BDO Antigua and Barbuda, was appointed as administrator of LIAT after Antigua’s government took a decisive legal step in pursuit of its goal to reorganize the regional airline.
LIAT’s CEO Julie Reifer-Jones was ousted on Friday after Antigua’s government successfully petitioned the Eastern Caribbean Supreme Court to pave the way for the Administrator’s appointment and put a stay on LIAT’s creditors meeting, which had been scheduled for July 31.
Senior Counsel Anthony Astaphan who led the Antiguan government’s case said “It was a petition to begin the process of reorganization by the appointment of an Administrator and a stay on all proceedings against LIAT – civil, liquidation, proceedings by the shareholders, creditors — which would give the Administrator, who was also appointed by the court [the power] to take a deep look at LIAT and to make a recommendation one way or the other.”
“The next step would be the Administrator assuming control of the assets and management of LIAT, and to begin the exercise imposed on him by the legislation of the amendments that were made recently,” continued Astaphan.
“It is a very, very important step because it gives the Prime Minister the opportunity to be able to work with the Administrator, and for the administrator to take a look at everything to be able to come to the conclusion whether LIAT 1974 Ltd, of one sort of the other, would be able to be reorganized and to be back in the sky,” Astaphan added.
Stacy Roach who represented LIAT gave no objection to the petition and the appointment of the Administrator.
The court was clear that the stay includes the shareholders agreement to liquidate, and also the creditors meeting that was scheduled for July 31.
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