PHILIPSBURG: --- Information reaching SMN News states that the Council of Ministers passed a resolution last week in their weekly meeting to fire the Supervisory Board Members of PJIAE Holding Company and to dissolve PJIAE Holding Company thereafter.
The source said that the intention of the Council of Minister is to sell or turn over shares to the Dutch Government in exchange for the loans they are seeking.
SMN News further understands that the strategy was used at the St. Maarten Harbor Group of Companies in 1998 when the Harbor was looking for finances to construct the AC Wathey Pier. The Dutch Government later turned over the shares to St. Maarten Harbor Group of Companies some years later.
The Princess Juliana International Airport is cashed strapped and while the management of PJIAE is seeking to secure loans from the Government of St. Maarten through the World Bank and the European Investment Bank, funds at PJIAE is running low especially since the income from head taxes are held by the bondholders. Besides the head taxes, the bondholders are also holding $54M which was acquired from the insurance company.
The government already gave PJIAE a financial injection of $5M and it is expected that another $10M will be going to PJIAE so that they could meet their daily expenses.
PJIAE is also in negotiation with Piper Jaffray and while the latter is ready to buy out the current bondholders so that PJIAE can have access to the $54M no decision has been taken as yet as which of the options PJAIE will follow.