General Robert Garcia appointed Nova receiver
Posted: 09/01/2007 - 12:40 PM
Author: Adele Ramos
General Robert Garcia, who oversaw the operations of the Novelo’s Bus company while it was under receivership between March 2004 and December 2005, has been given a much bigger job – to manage the receivership of another major company whose name also begins with the letter “N” - Nova Companies Ltd., which is the country’s largest shrimp farm.
The announcement was made out of Washington, D.C., U.S.A. today, Monday, January 8, by International Finance Corporation (IFC), which stated that, “To ensure that Nova continues to be a source of employment and economic benefits for the community, IFC and FMO [its partner – Netherlands Development Finance Company] have appointed Robert S. Garcia as receiver to take charge of the farm facilities, identify potential investors and sell the company’s assets to a new operation.”
Since last week Amandala has continued its attempts to get comment from company officials—to no avail. At press time this evening we have still not been able to speak with anyone at Nova, and our calls have not been returned.
According to IFC, Nova was lent US$9.5 million and not US$6 million as had been stated in its July 1998 press release. The loan was reportedly to “help the company rehabilitate and expand its operations.”
But despite the boost in Nova’s finances, severe difficulties bedeviled the company, “including depressed shrimp prices,” forcing a suspension of its operations.
Notwithstanding its current woes, however, the receivers are presenting an upbeat forecast for Nova.
“The IFC and FMO expect Nova to emerge from this process as a competitive farm with sustainable business, providing a positive contribution to the surrounding community and the economy of Belize,” says the IFC release. “IFC and FMO will assist the receiver in working toward this objective.”
Nova suspended operations last week. While our reports are that as many as 550 jobs have been in limbo because of the company’s demise, the IFC report issued today did not specify any numbers.
It also says that the company has been discussing the best way forward with the Government of Belize.
Nova was founded in 1989. According to the IFC, “The company’s management made extensive efforts, in coordination with IFC and FMO, to revitalize and turn around the Nova Shrimp Farm.”
We note that Garcia was the general manager of Novelo’s while the company was under the receivership of the Atlantic Bank and the Development Finance Corporation, and up until the time of the company’s permanent shutdown in December, 2005. Bankers had said that because they were unable to keep Novelo’s out of the red, they had to shut down the company, resulting in the termination of roughly 300 workers.
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