RdK wants to take over CUC management

online casino

President Commissionar, Omar van der Dijs stated the aforementioned.
Van der Dijs did not wish to go into details on the possible legal steps, but strongly insisted these would be taken. Rdk will verify to which extent the shareholders could be held responsible for damage at the power plant by not investing on time and overdue maintenance. In other words, we cannot preclude a court case.
The shareholders of CUC are the Japanese companies Mitsubishi and Marubeni – seated in the Curaçao Energy Company (CEC) – and possess 51 percent of the shares. The local water and electricity company Aqualectra has the other 49 percent. One way or the other, RdK wants to acquire 100 percent of the shares, says Van der Dijs.
According to Van der Dijs, the current shareholders of CUC have indicated several times, they were no longer prepared to invest. The consequence of this is that the installations of the power plant have gotten worse and the plant had even come to a complete standstill on May 1st of this year.
Due to the standstill of the power plant, the refinery had also come to a standstill, which led to a loss of revenues running into millions of dollars for the Venezuelan state-owned company PdVSA as manager of the refinery. The supply of oil products for the local market had been jeopardized to the extent that one was forced to purchase jet fuel abroad several times.
As reported by the Amigoe yesterday, RdK has used a different approach in trying to acquire the majority of shares of CUC. It was decided last May that RdK would try to take over the CUC-shares for one guilder, while they would try to take over CUC’s loan with the JBIC Bank. The outstanding amount of the loan amounted to approximately 40 million dollars. CEC would also try to get complete indemnification of possible claims for incurred damage to the power plant.
However, according to Van der Dijs, this risk of approximately 173 million dollars is too large for RdK. This explains why RdK had recently decided against this, and had drawn the shareholders’ attention to take their responsibility and make the necessary investments and overhauls in CUC. Despite this call, the shareholders refused to invest in the BOO-installations, according to Van der Dijs. That’s why RdK will be checking to which extent they could hold all shareholders responsible by contract for all damage incurred at the power plant due to insufficient investments and overdue maintenance.
Van der Dijs’ announcement came as a surprise to Aqualectra director, Anthon Casperson. However, Casperson did not wish to comment on the statements as regards contents. RdK had invested 7 million dollars in CUC for the necessary repairs earlier this year. Aqualectra had also made 500,000 guilders available for investments. In addition, the water and electricity company had given the prospect of investments so that the BOO power plant could supply more electricity, especially for Aqualectra. According to Van der Dijs, RdK further stands surety for an additional 4-million dollar investment to repair boiler 74 and a few water installations. "This is necessary because the power plant would otherwise encounter problems with the steam supply to the refinery," says Van der Dijs. This would bring the total investment of RdK in CUC to 11 million dollars. However, before the 4 million dollars are made available, the shareholders will have to meet certain conditions. Steam system has given CUC twenty weeks to repair boiler 74 so that boiler 2 could be put out of operation for major repairs.
During these twenty weeks, one has to reach an agreement on the financing within eight weeks. Before RdK actually makes the 4 million available, for which they stand surety, RdK wants to reach a solution with the shareholders on the transfer of shares. That means CEC and Aqualectra will have to assume their responsibility for possible damage caused by neglected investments and overdue maintenance.
NEWS ARTICLE TAKEN FROM WWW.AMIGOE.COM