CDB says it is not a  party to the Sale  Agreement of LIAT (1974) Limited
June 28, 2024

CDB says it is not a party to the Sale Agreement of LIAT (1974) Limited

As public comments on the affairs of LIAT (1974) Limited continue, the Caribbean Development has issued a statement with respect to the airline as follows:

Earlier this year, LIAT (1974) Limited ceased operating after entering administration in 2020. The company’s shareholders – the governments of Antigua and Barbuda, Barbados, Dominica, and St. Vincent and the Grenadines – agreed to the sale of LIAT’s three aircraft to the Government of Antigua and Barbuda.

An Aircraft Sale Agreement, for the sale of the three aircraft over which the Caribbean Development Bank (CDB) holds mortgages, has been executed between the Administrator for LIAT (1974) (as the seller) and the Government of Antigua and Barbuda (as the buyer).

CDB is not a party to the sale agreement. CDB’s only role is to provide the necessary consent for the sale, which it has done.

Under the sale arrangement agreed to by the shareholder Governments, the Governments’ approved that money from the sale should be proportionately allocated towards paying outstanding balances on the CDB loans that were initially made to the shareholder Governments to support LIAT (1974) Limited’s operations. The decision about the use of the sale proceeds rests with the shareholder Governments.

CDB is not involved in the financing or any aspect of the operations of LIAT 2020.

The Bank continues to take a strong interest in the development of regional transportation and remains a strong advocate for the development of the Caribbean’s transportation networks and infrastructure.