Arrangements Underway for Purchase of Assets of Bankrupt LIAT (1974) by LIAT (2020) Limited, Says Antigua and Barbuda Government

(CMC) — The Antigua and Barbuda government says arrangements are being negotiated between LIAT (2020) Limited and the court-appointed administrator of the inter-regional airline LIAT (1974) regarding the purchase of the assets of the bankrupt airline.

A statement issued following Thursday’s Cabinet meeting noted that the press throughout the English-speaking Caribbean has carried stories indicating that LIAT is a necessary development partner throughout the Caribbean and must be resuscitated.

The announcement by the government comes even as the Antigua and Barbuda Workers Union (ABWU) said it wants the court-appointed administrator, Cleveland Seafort, to provide the public with an update on the future direction of the company.

ABWU general secretary, David Massiah, said efforts are continuing to secure severance payments for the employees of the airline that entered into administration in July 2020 following increased debt and the impact of the coronavirus (COVID-19) pandemic.

The airline is owned by the governments of Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines.

While the Barbados and St Lucia governments have made available funds to cover the three-year outstanding debt to workers in their countries, that has not been the case with employees in the other islands.

“It is troubling to us in the Antigua and Barbuda Workers Union that we continue to call for the Prime Minister of Antigua and Barbuda (Gaston Browne) to ensure that Seaforth, the LIAT administrator, at least declare to the public on the yielding of his administration over the last three years. The administrator at least declare to the general public on the yielding of his administration that has gone over three years (and) …that was supposed to take 120 days.

“And so we denounce this sort of silence or dismissal by the government and the administrator that to date we have not been in a position to receive some sort of understanding as to how things can be moving forward.”

A statement issued following the weekly Cabinet meeting noted that “arrangements are being negotiated between LIAT (2020) Ltd and the Administrator of LIAT (1974) Ltd concerning the purchase of the assets of the latter”.

“Other states have been pursuing establishing another airline that wouldn’t compete on LIAT’s routes. However, LIAT (2020) is more than a year ahead in its planning to replace LIAT (1974) Ltd. and is likely to outperform the competitors.”