CGA CEO confirms that Dr. Canton is on his way out as CPBL CEO

This past Saturday, the principals of the Citrus Growers Association (CGA) and over 100 of its members convened for a Special General Meeting at their headquarters in the Stann Creek Valley to discuss, among other hot-button issues within the industry, the recent proposal which was forged in late February by the Government of Belize (GOB), the CGA’s Investment Company Limited (ICL), and Barbadian shareholders Banks Holdings Limited (BHL) in conjunction with lenders Heritage Bank and the Social Security Board (SSB), to allow for the SSB to engage in a proposed debt-for-shares swap transaction with the citrus processing company, Citrus Products of Belize Limited (CPBL), to resolve cash flow concerns in the citrus industry.

The main business of the meeting, which could aptly be described as bittersweet, was to seek approval for the transfer of 10% of the CGA’s shareholdings, which amounts to just under 8 million shares, in CPBL, which would then place the CGA – the former majority shareholder –among three minority shareholders, while settling its financial obligations with SSB in exchange.

As we have reported in the past, that 10% shareholding will now be in the hands of the SSB, but first on the agenda was an update on outstanding payments to citrus growers – an issue which had driven the CPBL into near crisis earlier this year when those farmers could not be paid for fruit that had been delivered to the processing plant. According to CGA’s Chief Executive Officer, Henry Anderson, the company has already received 46% of the forecasted production for this year and growers are now on schedule to get paid for all their deliveries based on world market prices, which in some cases have gone up.

Anderson said, “CPBL is proposing to pay growers a back pay of about 8 cents per box on all deliveries up to April 29, 2014. The new advanced [world market] price will be paid on all deliveries after April 29, 2014, but we have to review the submission under the price formula before it is finalized.”

He then announced that CPBL, which had been experiencing cash flow challenges, has received the proposed $4 million loan from the Government of Belize (GOB) at a 7% interest rate to ensure that the company can access working capital it needs, and which should prevent CPBL from having any other cash flow shortages through the remainder of the year.

As to the recently appointed CPBL board of directors, Anderson mentioned that the board is “working” and has been having meetings regularly to engage themselves with the happenings within the industry.

The CEO then addressed the growers regarding the tenure of CPBL’s Chief Executive Officer, Dr. Henry Canton, who was recently rumored to have been fired from his post – one he has held contentiously since October 2002.

Anderson spoke openly about the matter and drew elation from the gathering after saying, “This issue is being dealt with. The Board, at its April 16, 2014 meeting, decided to part ways with Dr. Henry Canton. Essentially where things are, the Board has told him that he has to go and that process is underway to work out how that happens instantly, so I expect that to be concluded over the next week.”

The previous CPBL board could not come to a unanimous decision as it relates to appointing a new auditor for the company, which almost led to a halt in production when CPBL’s bankers decided to “close the door” on the company’s operating finances; however, Anderson informed the audience that the new board is feverishly working to find new auditors to manage CPBL’s financial affairs.

“There was another matter sectioned under the MoU that had to do with the CPBL group audit for 2012/2013 that the new Board had to take up. We can report that the new Board has agreed to re-tender the 2012/2013 audit and not invite PKF [Belize] – it was a majority decision by the Board. The shareholders at their AGM said they wanted a new auditor, so it’s not the business of the Board to go against that, and I expect we should have another auditor appointed within the next 3 weeks,” he said.

With those critical matters aside, the growers unanimously passed a resolution to relinquish 10% (7,947,175) of the total of 50.99 % of CGA’s shares in CPBL to retire debt incurred to SSB, which leaves the CGA with 42.89% shares in CPBL.