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Will México cut BEL for non-payment?

Posted By: Marty

Will México cut BEL for non-payment? - 05/27/11 05:20 PM

In mid-May at its Annual General Meeting, the Belize Electricity Limited declared that its profits had plunged by five million dollars for the 2010 financial year and that it made only three point four million dollars. At that juncture, B.E.L. declared that because of the declining profits, it has not been able to meet loan obligations or pay dividends. Well, tonight there is a strong belief that B.E.L. might not meet its payments to the Comision Federal de Electricidad, the Mexican power supplier from whom it buys most of its electricity. If the country’s sole provider of electricity can’t pay its bill, then the government is obligated to step in as a guarantor for a credit line with the C.F.E. If that fails and C.F.E. cuts power supply, then B.E.L. could be forced to initiate a rotation system to meet the power supply for the country. The Public Utilities Commission, we understand, is attempting to broker a deal to stave off the blackouts. B.E.L.’s C.E.O., Lyn Young, is away and could not be reached for comment.

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Posted By: ScubaLdy

Re: Will México cut BEL for non-payment? - 05/27/11 06:47 PM

QUOTE: it made only three point four million dollars. . .

So . . . Since they did not pay their loan, nor dividents - who got the $3.4 Million???? Doesn't anyone ask that question?
Posted By: blat

Re: Will México cut BEL for non-payment? - 05/27/11 06:56 PM

not sure if your question is in jest sometimes hard to tell when the words are written instead of spoken.

If you owe $400,000,000 in debt and your payments are 20,000,000/year and you make a profit of $3,400,000 then you can not meet your payments, you are 16,600,000 short. So while making a profit you can not meet your cash flow obligations.
Posted By: Anonymous

Re: Will México cut BEL for non-payment? - 05/27/11 11:13 PM

$3.4M would only be "profit" if all liabilities are accounted for. So the $20M should already be factored in.

Any other use of the term requires clarification, such as PBT - Profit before Taxes.

At least, that's the way I understand it.
Posted By: Katie Valk

Re: Will México cut BEL for non-payment? - 05/28/11 02:35 PM

The PUC went to court with BEL over their accounting practices, as some inputs BEL put in the debt column, are not, and won the case against the utility company. So the numbers do not truely reflect debt/profit.
Posted By: Short

Re: Will México cut BEL for non-payment? - 05/29/11 04:45 AM

Originally Posted by Marty
If the country’s sole provider of electricity can’t pay its bill, then the government is obligated to step in as a guarantor for a credit line with the C.F.E.

I think the GOB is silently waiting for BEL to fail and then nationalize them.
Posted By: Inplub

Re: Will México cut BEL for non-payment? - 05/29/11 05:58 PM

Why in Hell would you want to nationalize BEL when they have a $400,000,000 debt?
Posted By: PROBUS

Re: Will México cut BEL for non-payment? - 05/29/11 06:34 PM

BEL is part of a giant multi-national corporation, and I am sure has all sorts of "creative accounting" schemes up their sleeves. I should imagine they see their Belize operation as an easy way to make money.
Posted By: elbert

Re: Will México cut BEL for non-payment? - 05/29/11 08:41 PM

Time to buy a good generator!
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