A special meeting of
bondholders has been called amid signs that the Michael Lee-Chin led AIC Barbados might
not meet Friday's deadline to repay millions of US dollars.
The bondholders were expecting to get back the near US$50 million they invested by Friday, but a source told RJR's Financial Report that the investors have been called to a meeting scheduled for next Thursday in Kingston in the wake of reports that AIC will only be making interest payments on Friday.
They will discuss two proposals presented by AIC on Thursday of this week regarding the repayment of the principal.
One is to take 30% of the principal now and the balance over two years.
The other option is to take enforcement and have the shares on certain assets that have been pledged, transferred to the bondholders.
RJR's source says the setback appears to have resulted from challenges AIC is facing in raising funds to make payments.
The company was, among other things, trying to divest its shareholding in Columbus Communications Group which owns the cable entity FLOW.
And news of yet another delay in the payment of AIC Barbados bondholders have come as a surprise in the wake of a recent assurance by Mr. Lee-Chin that every effort would be made to meet Friday's deadline.
In July, the bondholders agreed to an extension for AIC to meet its obligations and Mr. Lee Chin said he was happy that additional time had been given.
"We are in a better position now than ever before liquidity wise (and) my reputation is what is paramount, so we'll do everything to make sure that it happens without an extension. What happened in terms of the extension wouldn't have happened anywhere else in the world and for that I'm happy that this situation happened to me in Jamaica because it shows the reputation that we have in Jamaica and the trust that note holders have in us," Mr. Mr. Lee Chin told the Financial Report back in September.
The bondholders were expecting to get back the near US$50 million they invested by Friday, but a source told RJR's Financial Report that the investors have been called to a meeting scheduled for next Thursday in Kingston in the wake of reports that AIC will only be making interest payments on Friday.
They will discuss two proposals presented by AIC on Thursday of this week regarding the repayment of the principal.
One is to take 30% of the principal now and the balance over two years.
The other option is to take enforcement and have the shares on certain assets that have been pledged, transferred to the bondholders.
RJR's source says the setback appears to have resulted from challenges AIC is facing in raising funds to make payments.
The company was, among other things, trying to divest its shareholding in Columbus Communications Group which owns the cable entity FLOW.
And news of yet another delay in the payment of AIC Barbados bondholders have come as a surprise in the wake of a recent assurance by Mr. Lee-Chin that every effort would be made to meet Friday's deadline.
In July, the bondholders agreed to an extension for AIC to meet its obligations and Mr. Lee Chin said he was happy that additional time had been given.
"We are in a better position now than ever before liquidity wise (and) my reputation is what is paramount, so we'll do everything to make sure that it happens without an extension. What happened in terms of the extension wouldn't have happened anywhere else in the world and for that I'm happy that this situation happened to me in Jamaica because it shows the reputation that we have in Jamaica and the trust that note holders have in us," Mr. Mr. Lee Chin told the Financial Report back in September.
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