Centaur Cable Network, Providing CTV3 Belize News live from Orange Walk Town in Belize.

| Print | E-mail

Written by CTV3 Publisher Monday, 12 September 2011 04:11

Economy

On Wednesday night’s newscast we told you that the Belize Sugar Cane Farmers Association had been able to secure financing to purchase the majority shares in the Belize Sugar Industries Limited.

According to the BSCFA the Sterling Group of Companies from Mexico has shown interest in financing the BSCFA with a total of US$30 million. But before that can happen says the BSCFA the company is requesting certain information from B.S.I which is not being provided by the sugar producing company. And while the BSCFA says B.S.I has been giving them the run around, today BSI fired back with a press release.

The release states and we quote “Belize Sugar Industries Limited (BSI) wishes to clarify certain inaccurate and misleading statements recently made to the media by the leadership of the Belize Sugar Cane Farmers Association (BSCFA) which are likely to raise false expectations among the cane farming community and could lead to unnecessary and counterproductive disruption of BSI’s current efforts to seek a long term financing solution which includes the potential for the entry of a strategic equity investor.”

In the release B.S.I states that in a letter dated 21 August, 2011, Lead Consultant to the BSCFA David Gibson advised them that a Technical Advisory and Negotiating Team had been commissioned to undertake preliminary exploratory analysis of the feasibility/requirements for majority equity participation by the BSCFA in Belize Sugar Industries Limited and was there for requesting certain information to be used to invite bid proposals from potential financiers. According to B.S.I the request was promptly referred to Corporación Interamericana Para El Financiamento de Infraestructura (CIFI) which B.S.I has retained as Financial Arranger.

CIFI, says B.S.I, responded to the Lead Consultant on 29 August 2011 advising that

before considering the release of CIFI’s Information Memorandum they needed to review the track record and Curriculum Vitae of the BSCFA Advisory Team, an Organizational Profile of the BSCFA as a potential investor, and a corporate profile of the potential investors from whom the Lead Consultant would subsequently be inviting bid proposals. CIFI further advised that this request was in accordance with the Protocol for the release of the CIFI Information Memorandum to potential investors. The Lead Consultant never did respond to CIFI, says B.S.I.

In its press release B.S.I also makes it know that S. L. Sterling is not a bank but a small firm of legal and audit consultants and that American Funds SA is actually a commercial mortgage brokerage and consulting firm and not a bank. According to B.S.I both companies are not financiers and would need to raise the required funds from other sources.

Before ending the release B.S.I states, and I quote, that “BSI is looking for a strategic investor with the requisite financial competence and capability to provide the initial cash-equity injection as well as support new long term finance to secure increased output of both cane and sugar to underpin its long term investments and ability to service the BSI and Belcogen loan facilities.” end of quote. 

Share this post