G.O.B. to acquire CGA $9 Million loan, but Bank Holdings retains veto power

Dean Barrow

With all that said…with shares swapped, loan facilities appropriated and the Board restructured, has there really been any fundamental change to the core of the dispute? As we understand, despite the re-configuration of the Board, Banks Holdings Limited still retains its veto power, which means that it can still do what it has been doing all along. Today, Prime Minister Dean Barrow showed his hand where that is concerned. While Banks retains the veto, in the end G.O.B. is left with the face cards.

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Prime Minister Dean Barrow

“What changes is that there is first of all a new Board structure in which the three members representing government, Social Security and Heritage Bank hopefully will be able to break any logjam between Banks Holdings on the one hand and CGA on the other. What changes is that the new structure is supported by all. What changes is that the two warring sides have committed to making this new structure work. But what changes most fundamentally is that if it doesn’t, government via S.S.B. has the authority under the loan arrangement, under the security arrangements, to take the running of the company out of the hands of the shareholders completely and appoint a professional, impartial, unbiased receiver.”

But the PM maintains that he has received assurances from all stakeholders and both parties, and he feels there will be a genuine intention to make the structure work.