Wilfred Baghaloo, trustee appointed to oversee the affairs of Jamaica Beverages Ltd, which is seeking to reorganise its finances under the new Insolvency Act, says that the company will be making a proposal to creditors in the near future.

Baghaloo responded to queries from the

Jamaica Observer regarding the company’s recent filing for protection under the law which aims to help companies to restructure under challenging circumstances.The trustee told the

Business Observer: “As the Trustee appointed, please note that the appointment DOES NOT mean the company is insolvent as is defined by the Companies Act and other typical stereotype definitions.”He added further, “I was NOT appointed a liquidator or a receiver. Rather, I was appointed to oversee the company’s financial affairs for a short period of time, with the objective of restructuring the company’s financial arrangements for cash flow and other sustainable purposes.”Baghaloo explained that the primary purpose of the new Insolvency Act, which was passed in 2014, is to “allow companies to restructure their financial affairs in selective circumstances, with the objective of continuing as a going concern for the benefit of ALL stakeholders”.He promised, “In due course a proposal will be made to the creditors to facilitate the rehabilitation of the business.”The filing for restructuring by Jamaica Beverages follows a Supreme Court Judgment on May 22 this year in the case of Janet Edwards vs Jamaica Beverages Ltd.The Court awarded a significant sum — US$3.1 million — plus an additional J$66 million plus interest.Edwards was an employee of Jamaica Beverages Ltd and was injured during a robbery at the company’s Montego Bay warehouse in 2000.Sources told the

Business Observer that although the company’s insurers did not accept liability for the cost of medical care, Jamaica Beverages Ltd has contributed to the payment of medical costs and continued care for Edwards since the incident in 2000.The company, it was said, has already made payments totalling some US$494,000 or approximately $64million to Janet Edwards and her legal team, but the parties were unable to conclude a settlement arrangement out of court through “without prejudice” discussions between attorneys for both parties. Consequently, the parties resorted to litigation.The source told the

Business Observer that the Judgment “not only adversely affects the operations of the company, but also its viability. Jamaica Beverages Ltd has no choice but to exercise its options under the laws of Jamaica, in order to continue serving its stakeholders, including its customers and employees.”