~2012 Indenture agreement signed by Regina Labega gave Bond Holders right to hold on to Insurance money.~
PHILIPSBURG:—Prime Minister Leona Romeo Marlin wants the management of Princess Juliana International Airport (PJIAE) to dismiss at least 49 employees as part of PJAIE cost-cutting measures. SMN News has been reliably informed that the Romeo Marlin did not take PJAIE management serious when they requested the comfort letter which had to be submitted to the bondholders before October 1st, 2018.
SMN News learned that government did provide a letter on October 2nd, 2018 but the letter has no value and as such the bondholders held on to the money paid out by NAGICO Insurances. The insurance payout had to be deposited in a Bank of New York restrictive account which can only be accessed by the bondholders. Due to government (Shareholder Representative) negligence has placed the rebuilding of the Airport Terminal Building in real jeopardy.
The bondholders even refused to attend a meeting that was called with the World Bank, and the European Investment Bank. SMN News learned that the bondholders did not attend the meeting due to the fact that the Government of St. Maarten did not issue the much-needed comfort letter.
2012 Indenture Agreement
Former Managing Director of PJIAE Regina Labega who is now a staff member in the TEATT Minister cabinet signed an indenture agreement in 2012 when she took out bonds. In that agreement which was sanctioned by the then shareholder representative agreed that the bondholders will hold on to all insurance payouts in the event there is a disaster in St. Maarten or default by PJIAE. At the moment PJIAE is in a technical default regarding their debt service ratio. This default is what gave the bond holders the right to hold on to the insurance money that is now hampering the rebuilding of the Terminal Building.
PJIAE management is busy negotiating with Piper Jaffray and the World Bank to secure sufficient funds to rebuild the Terminal Building. However, the investors (financiers) want PJIAE to get full commitment from the government of St. Maarten but so far that is not forthcoming.
Just recently PJIAE committed itself $13,000.00 in monthly rent for office space. As of November 1st, the rent for the floor rented from The Vison Private Fund Foundation will have to be paid if the office is ready for occupation.
Cost Cutting Measures
PJAIE has approximately 280 employees and since the passing of hurricaneS, Irma AND Maria none of their employees were laid off even though PJIAE suffered immense damages due the passing of hurricane Irma and Maria. However, PJIAE has to cut its overhead costs if they are to secure financiers to rebuild, thus they proposed to the unions to freeze fringe benefits for its employees.
PJIAE has sent a proposal to the Unions (WICSU and ABVO) where they proposed to cut employees fringe and other benefits in order to cut cost to attract investors.
It is understood that WICSU who are representing the Air Traffic Controllers already agreed to the proposal sent by the management of PJIAE while they are still waiting on ABVO for a meeting and response to the proposal.
PJIAE used Ballas Nedam to rebuild a double roofing that can sustain 180MPH. It is understood that the re-enforced roofing of the Terminal Building costs over $14M. The Terminal Building will have 2 roofs in the event of a disaster PJIAE would still be able to operate from the Terminal Building when its completed in 2020.