Former eligible employees to receive LIAT Employees Compassionate Payment Bond

Antigua and Barbuda: The former LIAT employees are set to receive the first instalment of the LIAT Employees Compassionate Payment Bond. The Government of Antigua and Barbuda has transferred the payment to BDO Eastern Caribbean on Thursday, which will soon be distributed to the employees. 

This money will be given to the former employees of the bankrupt and shuttered LIAT (1974) Limited. 

What is LIAT Employees Compassionate Payment Bond?

The Compassionate Payment Bond, issued by the Government of Antigua and Barbuda is a 10-year bond which is valued at $16.72 million with an annual interest rate of 2%. The bond will play a significant role in addressing the 32% share of the severance of Antigua and Barbuda which is owed to 405 former LIAT (1974) Ltd. employees. 

Shedding light on the bond, the Prime Minister of Antigua and Barbuda, Gaston Browne said that this bond will ensure a measure of relief to all those workers who are affected by the closure of the airline. He added that this bond reflects the unwavering commitment and dedication of the authorities towards fairness and justice, representing meaningful action on behalf of the affected workers.

How to apply for Employees Compassionate Payment Bond?

The former LIAT 1974 Ltd. employees have been advised to contact BDO Eastern Caribbean, the appointed escrow agent, to receive their respective payments. BDO is an international network of public accounting tax, consulting and business advisory firms. They are responsible for managing and distributing the bond payments to ensure a smooth and equitable process for all eligible recipients.

LIAT 1974 bankruptcy 

The LIAT 1974 was liquidated following increased debt and the economic impact of the COVID-19 pandemic. Apart from Antigua and Barbuda, several other shareholders of the airline were also bankrupted, including, Barbados, Dominica and St Vincent and the Grenadines.

The airline has now replaced with LIAT 2020, an airline which was formed in partnership with Air Peace, a private Nigerian airline founded in 2013. The LIAT 2020 is now serving several Caribbean destinations, including, Barbados, Saint Lucia, Dominica, BVI, Guyana, Trinidad and Tobago, Jamaica and many more. 

The airline has been playing a significant role in enhancing connectivity across Caribbean nations and making it easier for travellers to traverse between the destinations.