LIAT Merger Acquisition of Caribbean Star Remains on Track

Discussions surrounding the merger acquisition agreement for LIAT (1974) Ltd to purchase Caribbean Star Airlines Ltd remain on track, according to a recent press release.

Meeting on Monday in Antigua were the sole shareholder of Caribbean Star Airlines Sir R. Allen Stanford, LIAT Chairman Dr Jean Holder, LIAT CEO Mark Darby, Caribbean Star President & CEO Skip Barnette, LIAT CFO (ag) Alan Bryon, and Caribbean Star CFO (ag) Michael Henne to discuss the details of the transaction.

Meanwhile, the governments of Antigua & Barbuda, Barbados and St Vincent & the Grenadines, primary shareholders of LIAT, are currently reviewing the purchase agreement.

All parties are working towards the signing of the purchase agreement by the end of March 2007. The completion of the merger acquisition agreement is expected by the end of April 2007, as the loan from Stanford Financial Group to the three governments requires approval from their individual island Parliaments.

The loan is a separate transaction from the purchase agreement, in which the Stanford Financial Group will lend $55 million to the governments of Antigua & Barbuda, Barbados and St Vincent & the Grenadines. The loan is for the purpose of the governments to provide funds to liquidate LIAT’s financial liabilities, as well as to provide working capital.

The loan is on commercial terms and has been guaranteed by the three governments and is expected to be repaid to the Stanford Financial Group from the proceeds of an Initial Public Offering (IPO) of LIAT stock. Already advanced as part of the total $55 million loan amount was $11 million.