Portland (Barbados) Limited’s bond has been called into question following a new agreement with Trinidadian bondholders whose US$23-million payout is pending.

The bond which came due on April 30 was not paid in full as agreed to under the terms of the trust deed. This called into question whether there would be an event of default if a new agreement wasn’t agreed upon by May 9, 2024. The bond is secured by US$4 million in cash and the ordinary shares of NCB Financial Group Limited (NCBFG), an entity for which Michael Lee-Chin is the majority owner and chairman.

Following a meeting held on May 7, a new agreement was signed by Michael Lee-Chin and Jennifer Dearsley, directors of Portland (Barbados) that stipulates a new agreement to repay bondholders.

Part of the agreement, as reported in the
Trinidad Guardian, stipulated, “The company (meaning Portland) by signing this agreement acknowledges and agrees that as of May 9, 2024, an event of default has occurred, and the noteholders are entitled to exercise their enforcement and other rights under the trust.”

Portland (Barbados) will now pay US$4 million together with interest due and payable as at April 30 to the trustee, Republic Bank Limited, on or before May 29. Portland will also pay US$4 million on or before June 15 and US$8 million on or before August 15. Republic Bank will also pay noteholders the current cash collateral of US$4 million on or before May 29 as well.

Due to the change in terms, the interest rate has moved from 8.25 per cent to 10.25 per cent which accounts for a 2 per cent default rate. If Portland defaults on any of the obligations listed under the new agreement, it will be required to pay 12.25 per cent.

“In relation to your request by letter dated May 13, 2024, the Trustee confirms that the Letter Agreement contains an accurate recital of the facts in this matter, including the proposal by Portland (Barbados) Limited which was accepted by Noteholders by the passage of an Extraordinary Resolution. The Noteholders have note declared an Event of Default and have authorised enforcement actions as provided for under the Trust Deed,” stated a May 14 letter by Republic Bank to Portland (Barbados).

NCBFG declared a J$0.50 dividend to be paid on June 10 to shareholders on record as of May 27. Lee-Chin’s holding company AIC (Barbados) Limited owned 1,239,642,254 shares at the end of March with Lee-Chin’s total holdings, including connected parties, stood at 1,445,299,340 shares. This translates to a dividend of about J$619.82 million or US$3,954,920.84.

Lee-Chin’s other holding companies AIC (Barbados) and Specialty Coffee Investments Company are also seeking to reorganize and receive extensions on some of their maturing debts. All of these debts are secured by NCBFG shares and other forms of collateral.