But there's a very large asterisk beside that net profit figure - because BTL was on track to book a 73 million dollar debt. That's the amount arising from an arbitration award payment to the Ashcroft Alliance to settle a mortgage debenture. Government has agreed to consider waiving 25 million dollars of that - still leaving BTL with a debt of 48.5 million dollars.
That would have swamped BTL in debt, but they came up with what may best be called a creative accounting treatment to convert that debt into equity.
A special resolution to amend the articles of association had to be passed to make that happen. Chairman Nestor Vasquez explained the unusual transaction to shareholders:
Nestor Vasquez, BTL Chairman
"After discussions with the government of Belize to whom we have been owing 48.5 million dollars, we have recommended that they take the value of 48.5 million dollars as equity. That is good for the company, that is good for the shareholders, because it eliminates the liability, it eliminated the debt of the company owing that amount to the government. They, in turn, get the value of the shares, and those shares. And those shares will be paying them 4% per annum as long as they own them. And they are not redeemable so they will be owning them indefinitely into the future every year."
"The net worth of the company will go up because the liability will disappear. The preference shares will become equity. It will no longer be a debt owing to the government, Ok? They will be earning their interest on that ownership of the preference shares."
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