Jeff Prosser has 7 days to finally close the BTL deal. That will mean coming up with the US$57 million to pay for the Carlisle Shares, which represent 52% or controlling interests in BTL.
In December the Prime Minister announced in the House of Representatives that if Prosser does not come up with the money by February 7th, the deal is off. At that time government was scrambling to regain its footing after having to roll over Prosser's bill at the International Bank of Miami when the American investor defaulted on the commitment to pay. But the simplicity of term "rolling over" belies the complexity of the transaction government had to undertake to cover for Prosser. 7NEWS has been reliably informed that on November 23rd, "rolling over" meant that government had to dig into the country's reserves and steal into a bond sinking fund to come up with US$17 million to satisfy some of the creditors that wanted out.
That's how far government was willing to go to bring Prosser along, and the Prime Minister went even further giving him a 75 day extension. Well now, time's just about up and the question is: does Prosser have the money? We can't say but what we do know is that he is trying mightily to raise cash, and using BTL's name to do it. 7NEWS has obtained this document, a bill from a Chicago law firm to BTL's Managing Director, John Vondras for US$150,000 for preparing the paperwork for a proposed US$85 million bond offering by BTL. We don't know what the bond would be for, but it makes it clear that it will be raised in BTL's name and this hefty bill for what are called "interim fees" is also charged to BTL.
And while this happens in the foreground, 7NEWS is reliably informed that in the background, former owner Michael Ashcroft is seeking to activate the buy back agreement that he signed with government when he first sold them the shares in December of 2003. Ashcroft is arguing that because the Prosser deal has still not closed, the buy back clause is still valid. And while the argument is one bit of news, where it's happening is another. Because of a peculiarity in the buyout agreement, government agreed that any arbitration or the buyback would be overseen by British arbitrators in the United Kingdom. As we understand it, Ashcroft's law firm has initiated proceedings to have an arbitral council named, meaning that even with so much in the air and so much under the bridge, we could end just as we began with Ashcroft back at the BTL helm. That possibility though is still very unclear as is the central issue of whether Prosser will finally come up with the US$57 million.
