Lawyers for the Walkerswood Partners Limited rescue consortium were hunting a hearing date this week for the court to bless the scheme that is meant to put the spice company back in operation under new ownership and management.

The group, however, has missed its May 1 deadline to ramp up production at Walkerswood, which was shuttered after debts reached $1.2 billion with no funds to repay creditors.

Ex-Im Bank, a major creditor that was holding out for a better offer from the Associated Manufacturers Limited/Pan Jamaica Investment Trust consortium on the $50 million it is owed, has since reached a tentative deal with the group.

"It's not finalised as yet, but we have had a very encouraging meeting with Ex-Im which has now gone back to the board for sign-off," said a source close to the talks.

Ex-Im chairman 'Butch' Hendrickson also confirmed that the talks had advanced, but said he did not have sufficient details for a more precise comment.

Having secured the agreement, lawyers for the consortium had hoped for a supreme court hearing this week, but twice failed to secure a judge and were trying again for yesterday.

Debt owed

The AML/Pan Jam investors who are pouring at least US$8 million, perhaps more, into the spice company, had offered Ex-Im bank 30 cents on the dollar for every dollar of debt owed.

Ex-Im had no quarrel with the payout rate, but considered the terms unattractive.

Instead of the 10-year profit sharing arrangement put on the table, Ex-Im was demanding a share in Walkerswood profits into perpetuity.

Ex-Im was also pushing for the remaining debt to be converted into US dollars, which AML's Ian Garbutt had said he was willing to accept.

The talks with Ex-Im had been ongoing since last September.

Another creditor holding out was the Environmental Foundation of Jamaica with which Pan Jam was negotiating middle ground. Neither of those two parties were reached for comment.

However, our source say the EFJ sticking point was not really such a big problem, and would not hold up the deal. The foundation is owed $65 million, and will also get 30 cents on the dollar.

Approval

At the same time, too, he said that the approval by the court is expected by the end of this week, which would mean no later than today.

The deal will give the rescue syndicate 90 per cent of the company.

The investors also include a group led by Howard Mitchell.

The parties have not disclosed ownership of the other 10 per cent.

sabrina.gordon@gleanerjm.com

Walkerswood partners current shareholdings

G. Raymond Chang Ltd 33.7%

Michael Edwards 17.1%

Woodrow Mitchell 17.1%

Virginia Burke 4.0%

Celia Dixon-Chambers 4.0%

David Jaeger 4.0%

Rupert Francis 4.0%

Lileth Guy 4.0%

David Lindo 4.0%

John McFarlane 4.0%

Denyse Perkins 4.0%

New scheme of arrangement will give the rescue syndicate 90 per cent ownership.