The other Ashcroft-affiliated bank, the British Caribbean Bank got some bad news in the Supreme Court today when Justice Oswell Legall granted the Government of Belize an injunction restraining the bank from going ahead with arbitration proceedings in respect of the mortgage debenture acquired by the government when it took over Telemedia.
The mortgage debenture covers a 22.5 million US dollar loan from the British Caribbean Bank to Telemedia in 2007. Since the takeover, the Government-appointed board has declared that the loan was unlawful and has taken it off BTL's books. The British Caribbean Bank wanted to take that to arbitration, but in a 50 page judgment issued this morning, Justice Legall explained that it is just and convenient to grant an injunction to stay those foreign arbitration proceedings until the local claim for compensation by the bank is heard and determined.
Legall had previously ruled that the acquisition of Telemedia is constitutional - a matter which is now facing appeal at the Caribbean Court of Justice�.