Eugene Zabaneh and Denzil Jenkins, CGA director, argued to growers at Saturday?s meeting that the investment agreement would cause them to lose control over the processing company, CBPL.

Under the new deal, the 900 growers who are members of the CGA would be left with a 51% stake in the CPBL, whereas a 46.59% stake goes to two Caribbean companies, Blue Water of Trinidad, a purified water company, and Banks Holdings Limited, a group of companies that are the Bajan equivalent of Belize?s Barry Bowen enterprises, as they produce a leading beer in Barbados and supply Coca Cola locally.

But Jenkins and Zabaneh argued to growers that under the terms of the agreement, the Caribbean investors would have to sanction even the payment the growers would get for the fruit they deliver at the factory during the harvest season.

While the directors of the Belizean entities argue that the investment agreement will open doors for better marketing for Belizean citrus, especially in Central America and the Caribbean, some growers who attended the meeting on Saturday are stunned that the deal, in their view, literally ?gives away? over 12 million shares, worth BZ$12 million, to the foreign-owned companies for a mere US$2 settlement.

These shares presently belong to citrus growers, who purchased a series of shares over the past six years, first a 10% block in 2000 for $8 million and then completing a 99.9% acquisition of Del Oro (Belize) in 2002 for a US$2 payment and the absorption of US$18.9 million in debt.

Del Oro Belize is now succeeded by the Citrus Products of Belize Limited. In turn, CPBL has a series of subsidiaries under its umbrella, among them the Belize Food Products and the Citrus Company of Belize.

We have no indication whether the present investment agreement between the CGA and the Caribbean companies binds them to assuming any of the company?s debt for the US$2 settlement they are being asked to pay for 12 million shares. What has been indicated is that under the deal, the Caribbean companies will pay US$12.5 million, and get 25 million shares at a price of US 50 cents each. We understand this is close to what they are worth on the CPBL?s books.

Growers protest that Blue Water and Banks Holdings are, in effect, getting the remainder of the shares?some 12,023,446 shares?for nothing. Sold at their book value of US 50 cents, growers could get another US$6 million out of the deal.

However, Bridget Cullerton, CGA?s CEO, told Amandala today, that the investors would be bringing in $25 million to help the CPBL reduce its debt. She said that debt servicing has been burdening the company and interest payments alone amount to $5 million annually.

She said that the current debt of CPBL is BZ$82 million, but in addition to taking on the debt, Cullerton said, the Caribbean companies will boost their marketing potential, first because of the value added processing they would bring to the company, including new packaging techniques for Belizean citrus products, as well as linkage to markets in the region, which, she said, would reduce dependency on the US market. She said that their operations would become more viable and sustainable, and they would be better able to generate dividends to pay shareholders.