Jeffrey Prosser flew into Belize today with a pack of attorneys. And rightfully he should have because the conventional wisdom in business circles is those who bring attorneys come to negotiate, not to pay. And indeed Prosser brought no pay-off money, just the promise of something in the pipeline, imminently so says he. But more than just negotiate, Prosser's lead legal eagle Lanny Davis was asked to do some much needed public relations work to restore Prosser's battered image.
Davis held an invitation only press conference at BTL's boardroom to explain away his client Jeffrey Prosser's financial woes and his inability to close the deal with BTL. Davis conceded that Prosser had not paid the $57 million for controlling interests in BTL and accepted that was a breach. But nothing else would pass; as far as Davis was concerned Prosser had done well by paying for social security's shares and despite defaults and dubious deeds in between, Prosser, BTL and Belize were all good. Even if, as Davis alarmingly conceded, as of mid-December, the deal has not closed, meaning that Prosser has no legal ownership of BTL.
Jules Vasquez,
Sir as you understand it has this deal been closed, are we at closing, have we passed the point of closing? Our information is that the deal in fact has not been closed.
Lanny Davis, Prosser's Attorney
"Well there are pessimists and there are optimists. We have shown that through the investment of over $50 million its better to be optimistic, you're more likely to be right than pessimistic. We have every confidence that the deal will be sealed in the not too distance future."
Jules Vasquez,
As I understand it the last agreement, the last extension for closing, lapsed at the end of November. We are right in lapse of an agreement so right now there is no agreement because if the extension has lapsed and a new extension has not been signed or agreed upon then we have no agreement. So right now you are sitting here basically on the good graces of the security who let you in terms of you don't have a deal because the deal, the extension is lapsed.
Lanny Davis,
"Well first of all we've asked for an extension and we're confident that we'll complete the financing and there will be no problem with getting an extension. But you are correct, we are giving you only a statement of confidence that this will happen in the not too distance future. The extension of time, we believe, will not be an issue and we agree with the government that that will be worked out for benefit of the people of Belize."
"But we don't accept the word 'default,' it is a legal word that we'll let the lawyers argue about. We do believe there is no need for and there is no new contract. There are two notes, one of which has been virtually completely paid when $28.5 million was paid to the government. The other is a $59 million balance and that balance is under the present time in negotiation with a financial institution."
Jules Vasquez,
So I am saying then from my perspective you have been in default of that. In 'default' the word has meaning, optimist or pessimist, you have been in default on that since August so I am saying should not the Belizean public beyond even healthy skepticism just natural skepticism say these guys are flim flam men?
Lanny Davis,
"Well if you are insisting on looking at a glass that has a half a glass of water. We could spend most of the day where you would say it's half empty..."
Jules Vasquez,
But the Belizean taxpayers continue to stand the risk.
Lanny Davis,
"...and I would say its half full. There might be political motivations to say its half empty, and I might, but I would say lets look at the record and lets agree on the facts."
Jules Vasquez,
But you guys have not lived up to one obligation, not a single obligation made on March 22nd in what I believe was a fraudulently worded release that gave Belizeans the impression that $89 million had been paid in cash, not promissory notes, and the deal was sealed.
Lanny Davis,
"Well all I can talk about is what the facts are. What you believe you are entitled to. I think we are asking only that we be judged on what we've done and that we be given a chance to prove that our optimism is well founded."
"My instinct is that we ought to be given some credit for what we have already done but we ought to be held accountable if we can't keep our promises. And so our promises are that we are going to pay the government the remaining balance and we are going to continue to invest in the island, that we have already done."
Jules Vasquez,
Sir you said that you should be accountable if you don't live up to your promises and as I challenged you earlier I will challenge you again, Jeffrey Prosser and ICC have failed to live up to only every single promise they have made as regards the financing of this transaction and it has put the people and the government of Belize at significant risk so the perspective of optimism and pessimism depends on whose taking the risk and in this case the government of Belize continued to bear the risk for ICC which failed in every case to live up to its promises.
Lanny Davis,
"It sounds like you have a perspective that I am not going to be able to change so I just have...you've repeated your perspective so allow me to repeat mine: $28.5 million where I come from is real money. Where I come from, paying the debt service that the government owed to bondholders for $6.5 million by Mr. Prosser is real money and where I come from the total of $50 million is real money. So you and I may differ on it not being enough money cause it's not the total that's owed..."
Jules Vasquez,
Its not even the majority shares. This company for which you now are accruing the earnings presently has annual earnings of $120 million and profits of $18 million so that's real money too.
Lanny Davis,
"I am going to let your viewers decide whether $50 million is enough to show good faith."
And you heard right Davis did call Belize an island, but later apologized. Still, we gather, he hopes we islanders will come around to his and Jeff Prosser's way of thinking. Which means that BTL will be buying US$24.75 million of new equipment from Prosser and his affiliates in the next 24 months. Who made the decision? Well we imagine Prosser's executives did, because the money will go towards Prosser's legal settlement in the United States. Davis explained that in their view, BTL buying from Prosser and affiliates including Intelco, is really no big deal.
Lanny Davis, Prosser's Attorney
"The reference to money being used in a way that isn't to the benefit of BTL is simply not true. The BTL has a need for some equipment to improve its system. New towers, switching equipment, and such equipment that BTL would need and that money would be used to purchase equipment or to lease equipment regardless of whether or not Mr. Prosser chooses to use the proceeds for his own other business issues."
Jules Vasquez,
Has the board approved that and is the company aware that it is going to buy such equipment from ICC for that price?
Lanny Davis,
"Well they are not going to be buying it from ICC, that's not accurate. There will be some equipment purchased from Intelco that is needed to improve the system, there will be some equipment leased from Intelco that is needed to improve the system, and that is all that is at issue and regarding what the board has or hasn't done, I am just not informed on that subject I am sorry to say."
We note that Prosser himself was originally supposed to be at the press conference, but cancelled out after three reschedulings. Late word to 7NEWS is that representatives of the Royal Bank of Trinidad and Tobago have assured government that it is seriously considering extending Prosser credit to pay off the debt to the International Bank of Miami. Of course, RBTT wants in because if Prosser succeeds, that's the only serious chance that bank has of recovering a portion of the US$25 million it loaned to the now insolvent Intelco.