Caribbean Investment Holdings Ltd Update on Judicial Action (3647X)
23 November 2017 - 10:27PM
UK Regulatory
TIDMCIHL
RNS Number : 3647X
Caribbean Investment Holdings Ltd
23 November 2017
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Caribbean Investment Holdings Limited
23 November 2017
CARIBBEAN COURT OF JUSTICE ANNOUNCES DECISION IN THE BELIZE BANK
LIMITED CASE AGAINST THE GOVERNMENT OF BELIZE CONCERNING THE
ENFORCEMENT OF LCIA AWARD
Caribbean Investment Holdings Limited (London - AIM: CIHL;
Bermuda - BSX: CIHL) (the "Company") announces that the Caribbean
Court of Justice (the "CCJ") (the final court of appeal for Belize)
has handed down its judgment in a case brought by its banking
subsidiary, The Belize Bank Limited (the "Bank") against the
Government of Belize concerning the enforcement of a London Court
of International Arbitration (the "LCIA") arbitral award.
The arbitral award was issued by the LCIA on 16 January 2013
(the "LCIA Award") and directed the Government to pay
BZ$36,895,509.46 (US$18,447,754.73) (as at 7 September 2012) plus
interest at 17% compounded on a monthly basis from 8 September 2012
until the date of payment plus costs. This debt arose out of a loan
note issued by the Government to the Bank on 23 March 2007 for the
sum of BZ$33,545,820 (US$16,772,910) (the "Loan Note"), having
defaulted on guarantees it had given to re-pay the Bank for loans
advanced to Belize healthcare provider, Universal Health
Services.
The LCIA Award confirmed that the Loan Note was valid and
binding on the basis of a judgment given by the Privy Council,
which was at that time Belize's highest court of appeal in The
Belize Bank Limited v Association of Concerned Belizeans and
Others. In this judgment the Privy Council rejected a challenge to
the Loan Note brought by the Association of Concerned Belizeans
that it did not comply with the Finance and Audit (Reform) Act,
2015.
In its judgment the CCJ granted permission to the Bank to
enforce the LCIA Award in the same manner as a judgment or order of
the Supreme Court to the same effect. It also ordered that the Bank
have its costs for the appeal before the CCJ as well as before the
courts below. In light of the interest which has been accruing on
the LCIA Award, the total amount due as at 22 November, 2017 is
BZ$90,645,607.20 (US$45,322,803.60).
The CCJ's judgment follows in the footsteps of the enforcement
of the LCIA Award in the United States. On 8 June 2016 the US
District Court in the District of Colombia enforced the LCIA Award
and entered judgment upon it. That decision was appealed by the
Government to the US Court of Appeals for the District of Columbia
Circuit. The Court of Appeals affirmed the judgment of the District
Court on 31 March 2017. And on 13 November 2017 the US Supreme
Court rejected the Government's request to review the decision and
judgment enforcing the LCIA Award. As a result, judgments enforcing
the LCIA Award are now final and not subject to further appeal in
both the United States and Belize.
This long outstanding debt arises from funds originally advanced
by the Bank as part of the Belize Government's policy of healthcare
reform in Belize. The Bank's debt has been confirmed by an
international arbitral tribunal, the Privy Council, the courts of
the United States, and now the Caribbean Court of Justice. The
Company looks forward to the Government of Belize finally settling
this debt after years of unnecessary litigation to recover the
funds.
For further information contact:
Caribbean Investment Holdings Limited
UK +44 (0)20 7248 6700
Belize +501 227 7178
Cenkos Securities plc
Nicholas Wells +44 (0)20 7397 8920
Note: This and other press releases are available at the
Company's web site: 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.
- END -
This information is provided by RNS
The company news service from the London Stock Exchange
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