In spite of attempts made to rejuvenate the nation’s leading poultry company, Gladstone Farms is now considered insolvent and its assets to be sold in an attempt to pay off its $8.5 million debt.
Making this statement in an exclusive interview with the Nassau Guardian, Receiver and Manager appointed by CIBC, Ishmael Lightbourne said that all of Gladstone Farms’ liabilities greatly exceed its assets and is unable to meet any of those liabilities at the present time.
“Even if debt to the secured creditors can be made whole, there is nothing to be left for anybody else,” he said “that is the bottom line. So the financial state of Gladstone Farms at this time is an insolvent one as the company is completely bankrupt.”
There is approximately $4.5 million dollars worth of secured creditors including the $2.5 million owed to the bank (CIBC). These are people who lent money to the company or provided goods and services on the basis that they (Gladstone Farms) had certain assets that they have control over.
Lightbourne stated that there is also another amount of liabilities that include $4 million dollars worth of unsecured creditors which are people who have also lent money, goods and services to Gladstone Farms, but were not secured by any of the assets of the company.
“If the best that we can do in terms of selling the assets is $4 million dollars, they don’t even have enough money to fully pay the secured creditors, and on top of that, you have another $4 million in unsecured creditors who may not be paid.”
This follows the announcement made by Lightbourne that Gladstone Farms was up for sale and that in order for the company to survive, it was in desperate need of a buyer.
Stating that receivership can be seen as a step before possible liquidation, Lightbourne noted that presently, the bank has all of Gladstone Farms assets as their security for money that was lent to the company and the company has not been able to pay the bank any of its outstanding obligations.
After paying off the bank’s obligation and one or two other secured creditors, then what remains will go into the hands of a liquidator to share up between all of the other unsecured creditors.
By Lisa Albury, The Nassau Guardian
