Local News

The sale of Belize Sugar Industries factory at Tower Hill in Orange Walk to the group American Sugar Refineries is all but complete.  Today, the Minister of National Emergency Management, Senator Godwin Hulse told Love News that all the intricate details of the deal have been worked out.

GODWIN HULSE

Minister

Ministry of National Emergency Management

“We have no signed; all the due diligence has been done, ASR has signed the subscription deed which sets which now sets payments of the first tranche of the dividends for a week from now, so we are well advanced.  I think a month from now they will be looking at settling the outstanding debts and then the show is on the road but you can consider pretty much a done deal at this stage.”

PATRICK JONES

Senior News Reporter

Love FM

“What’s left to be signed?”

GODWIN HULSE

Minister

Ministry of National Emergency Management

“The shareholders Agreement and that should be done within the next 30 days or about 28 days now.”

PATRICK JONES

Senior News Reporter

Love FM

“So during the course of the next sugar crop, you expect everything to be totally smooth sailing?”

GODWIN HULSE

Minister

Ministry of National Emergency Management

“Absolutely, I don’t see any difficulty at all.  The whole push of ASR is to expand the mill, to expand the production, to help farmers to improve their yields and I think it’s a great opportunity for the industry.  At least it stabilizes the industry up north and we should not be worrying about sugar.  I have been associated with the BSI for a very long time and there is always nervousness in the bellies of the directors and everybody – how are we going to meet our payments? If there is a breakdown, what we do? Will we be able to go through the crop… the quality of the sugar?  ASR is the world’s biggest refiners – it’s the biggest sugar company in the world – they have co-generation plants, they have all the technical capacity, they have the finance and Belize’s operations is just a tiny part of the overall operations.  Pretty much, we’re home safe – to use my analogy – I always say it is better to be a link in a big chain than to try to be the whole chain yourself – well we’re a link in the big chain so if the chain snaps, of course, they have to patch the link so the chain continues to roll – I think we’re safe.”

Minister Hulse explained that the categorization of the deal as a takeover of the sugar industry is not all together accurate and he says that there were not big concessions given to ASR to complete the deal.

GODWIN HULSE

Minister

Ministry of National Emergency Management

“Let’s not say take over – what has happened is as you know, BSI had a significant debt about 64 million dollars which was owed collectively to people who financed the co-generation plant and BSI itself for its expansion to accommodate the power coming from Belcogen.  They have taken over that debt per se and so we valued the shares; we have not sold the company – we have expanded the shareholding to accommodate that portion of the debt which they now have as equity and BSI’s original shareholders retain their portion albeit shrunk – I don’t have the exact figures but you’re looking around 20/80 roughly.  BSI Belcogen already enjoyed concessions through piece of legislation which ran out in 2014 – I think that’s being expanded/stretched to 2016 so which is not a significant expansion and that is about it.”

The American Sugar Refineries Incorporated deal is expected to result in the modernization of the sugar industry.  ASR owns sugar mills in the United States, Dominican Republic and Mexico.

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