GNIC settles debt with NICIL

Jun 09, 2017 News 0

The Guyana National Industrial Company (GNIC) has settled its debt with National Industrial and Commercial Investments Limited (NICIL).
The matter which was engaging the attention of Commercial Court Judge, Rishi Persaud,

GNIC has settled a debt with NICIL for the Lombard Street property it currently occupies.

came up for hearing yesterday and the company paid off the interest amounted in the matter, which totalled $9,787,589.
Following the payment, attorney for NICIL Timothy Jonas, withdrew the action against the shipping company bringing an end to the matter.
The case stemmed from issues which dated back to 1995. GNIC, a company owned by Laparkan and the Guyana National Industrial Company (employees), purchased the assets of the former Guyana National Engineering Corporation (GNEC) and leased Lots 1-12 Lombard Street as part of the privatisation of GNEC.
NICIL reduced the rent due from GNIC by 50 percent in 2000 and the sale price of equipment in 1995 by 30 percent. Despite these concessions, GNIC failed to honour its obligations to pay under the lease. The matter was forwarded to arbitration in July 2009.
An award of $148,860,870 was made by the Court following the arbitration proceedings between NICIL and GNIC for unpaid rent in 2013. But GNIC had failed to comply with the award.
Only recently did the Company pay $108 million to the coffers as part of the settlement.
According to court documents, the monies were paid in parts, $60 million and then $48 million. It was later reported that the two entities were unable to come to a settlement over the outstanding amounts. The matter was therefore set for trial.
However, last week a cheque for $47 million was handed over to NICIL by Attorney Neil Boston, on behalf of GNIC, for occupying the leased Lombard Street, Georgetown property. That amount aided in settling the balance of the monies owed to NICIL.