Caribbean Investment Holdings Ltd Update on US Judgment (5850X)
23 February 2017 - 2:01AM
UK Regulatory
TIDMCIHL
RNS Number : 5850X
Caribbean Investment Holdings Ltd
22 February 2017
This announcement contains inside information
CARIBBEAN INVESTMENT HOLDINGS LIMITED: UPDATE ON U.S. JUDGMENT
AND STEPS TAKEN BY THE GOVERNMENT OF BELIZE TO PREVENT ENFORCEMENT
OF JUDGMENT
Belize City, Belize, February 22, 2017 -- Caribbean Investment
Holdings Limited (London - AIM: CIHL; Bermuda - CIHL)
Further to Caribbean Investment Holdings Limited's ("CHIL" or
"the Company") announcement on 9 January 2017, the Board of CIHL
wishes to update shareholders on the US Supreme Court judgment in
favor of the Company against the Government of Belize ("GOB").
In July 2014 CIHL commenced proceedings in Washington, D.C. to
enforce a London Court of International Arbitration ("LCIA") award
against GOB. The LCIA award concerned damages for the breach by GOB
of a settlement deed with the Company entered into in March 2005
and subsequently amended in June 2006. The deed had settled a
dispute over the purchase and sale of shares in a Belizean company,
and in consideration for the termination of a pending arbitration,
GOB had promised, among other things, that the Company would
receive certain tax treatment in Belize and that the Company would
be indemnified for any breach of the GOB's warranties.
The U.S. District Court granted enforcement of the LCIA award in
favor of CIHL and rejected all of GOB's challenges to the award and
issued a judgment on July 1, 2015, for approximately US$27.5
million including interest, against GOB. GOB appealed that decision
to the U.S. Court of Appeals for D.C. Circuit. In a decision dated
May 13, 2016, the D.C. Circuit affirmed the judgment in favor of
CIHL and rejected all of GOB's arguments on appeal. GOB then sought
review by the United States Supreme Court. On January 9, 2017, the
U.S. Supreme Court announced that it had denied the Government of
Belize's petition for certiorari, rendering the judgment entered by
the U.S. District Court on July 1, 2015 in favor of CIHL final and
not subject to further judicial review.
On January 23, 2017, CIHL filed a motion in the U.S. District
Court for the District of Columbia pursuant to 28 U.S.C. -- 1610(c)
seeking judicial authorization to seek enforcement of the judgment
against GOB.
On January 30, 2017, the Government of Belize enacted
legislation designed to criminalize the pursuit of legal action in
foreign courts including the enforcement of certain foreign
judgments against GOB. The specific target of the legislation was
the CIHL U.S. District Court judgment.
The LCIA arbitral award underlying this judgment has also been
recognized and declared enforceable by the English courts. The
Caribbean Court of Justice had declined to allow the enforcement of
the LCIA award on Belizean public policy grounds, strongly
criticizing GOB for failing to seek the approval of the Belize
National Assembly for the settlement deed.
On February 3, 2017, the Attorney General of Belize obtained an
injunction from the Supreme Court of Belize restraining CIHL from
enforcing the LCIA award and U.S. District Court judgment.
On February 3, 2017, CIHL filed a claim in the Belize Supreme
Court to challenge the constitutionality of the Central Bank of
Belize (International Immunities) Act and the Crown Proceedings
(Amendment) Act passed by the Belize National Assembly.
On February 6, 2017, the U.S. District Court granted the order
sought by CIHL in its motion pursuant to 28 U.S.C. -- 1610(c).
On February 7, 2017, CIHL filed an application in the Belize
Supreme Court to discharge the injunction and to strike out the
underlying claim. The hearing of this application is scheduled to
take place on February 27, 2017.
The Board of Directors of CIHL believe that the serious and
aggressive legislative measures enacted in Belize and the
injunction obtained by GOB are clearly designed to intimidate the
Company and to prevent the enforcement by the Company of this
legitimate and legally binding judgment.
The Company is presently reviewing its strategy going forward
based on recent events and the advice of counsel.
For further information contact:
Caribbean Investment Holdings Limited
UK +44 (0)207 248 6700
Belize +501 227 7178
Cenkos Securities plc
Nicholas Wells +44 (0)20 739 8920
Note: This and other press releases are available at the
Company's web site: http://www.cihltd.co.
Background Information
Caribbean Investment Holdings Limited (CIHL) is a parent holding
company with no independent business operations or assets other
than its investments in its subsidiaries, intercompany balances and
holdings of cash and cash equivalents. CIHL's businesses are
conducted through its subsidiaries. The Belize Bank Limited (BBL)
is incorporated and based in Belize and focuses on the provision of
financial services and lending to domestic clients. Belize Bank
International Limited is incorporated and based in Belize and
focuses on the provision of financial services and lending to
international clients. CIHL also owns an international corporate
services business based in Belize, which operates as Belize
Corporate Services Limited. Within Belize, BBL is the largest, full
service commercial and retail banking operation with a head office
in Belize City and eleven branches extended into each of the six
districts of Belize. The principal operations of BBL are commercial
lending, consumer lending, deposit taking and related banking
activities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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