The Social Security Board has fast tracked the approval a 15 million dollar investment in BEL. It's basically bailout money for the power company, which seems to be in dire straits financially - so much so that it's willing to offer its headquarters as security for the investment.
7news has seen the leaked copy of an internal memo from the Manager of Investments to the CEO Richard Flowers.
It states that in the first quarter of this year, BEL incurred a loss of 2.6 million dollars - but does not report the figures for the second or third quarters. Still the power company predicts a year-end profit of 6.9 million dollars.
BEL offered Social Security 10 million dollars in preference shares - with their headquarters as security. But BEL is in such a rush for the infusion of cash that no valuation for those properties has been concluded.
BEL's investment committee and its board approved 10 million dollars in preference shares with a yield of 5% and 5 million in debentures at 7%. The prospectus for those debentures is still in draft form.
Due to the late breaking story, we could not get comment from BEL, but we do know that high fuel prices and the high cost of power from CFE in Mexico have put the company in a liquidity bind - similar to the one faced by the previous owner.