The Belize Sugar Industry had been saddled with tens of millions of US dollars in debt for years, but tonight, it has a fresh start, a complete reset - all the numbers on its balance sheet are a rolled back to Zero.
And that's because American Sugar Refinery has paid off the full indebtedness - 64.8 million US dollars - in exchange for 78.6% equity in the company's shares.
With that $64.8 million US, BSI paid off all its debts which it owed to International Netherlands Group (ING), the Belcogen Consortium of Lenders, and the Government of Belize.
Viewers may remember that GOB stepped late in 2011 and loaned BSI 10 million Belizean dollars to jump-start cane crops and as a measure to get ING to give BSI a one-year extension on its 20 million US dollar debt.
Well, all of those debts are paid with ASR owning majority of the company and BSI Employee's Holdings Limited controlling the rest of the 21.4% shares.
This evening, we spoke with BSI's CEO, Joey Montalvo, and via phone, he told us that not only are the bills paid off, BSI now has cash in hand.
Here's what Montalvo told us about the current make-up of the shares of the company:
Daniel Ortiz
"There is a lot of speculation and fear mongering that has been broadcasted to the public. Sir, being intimately involved somewhat with the deal and knowing the partners from ASR - what would you be able to say to try to allay some of those fears?"
Joey Montalvo (via phone), CEO - BSI
"I think the only fears that you may be referring to were those that were brought up by the cane farmers that they perhaps feel that they are going to be displaced. Nothing could be farther the truth - the cane farmers were given a presentation by ASR, first of all in securing a strategic partner BSI was basically look at the survival of the industry and survival of the industry means they need to promote expansion, improve the returns and so all industry stakeholders must remain committed for this long term goal."
"They need to continue to work together to meet the challenges of competing in a very competitive global environment."
"In terms of the field sector - ASR recognizes the need to boast cane farmer production and their plans for the provision of extension services to cane farmers, identifying financing for them, providing advice on best farm management practices and so forth."
In relation to the allaying of fears with this corporate takeover, Montalvo assured us that ASR fully understands the economic and national implications of their majority shareholding in BSI.
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