Jamaica Citrus tender deadline extended
Published:Wednesday | December 14, 2011 | 12:00 AM
The Development Bank of Jamaica (DBJ) has extended the bidding deadline for the assets and/or business of Jamaica Citrus Growers Limited because of strong interest from potential investors in the United States and Trinidad & Tobago, according to receiver-manager PricewaterhouseCoopers (PwC).
The deadline for bids is now January 27, 2012.
The company was placed on the market in September following failed efforts to locate an equity partner for the indebted producer of the Juciful drink.
PwC first invited offers for the purchase of Jamaica Citrus on September 5, setting November 18 as the deadline for bids.
PwC's Wilfred Baghaloo said on Monday that "we have had several requests from the United States and Trinidad and so we have extended the time to give potential buyers time to do their due diligence."
Jamaica Citrus is a subsidiary of the Jamaica Citrus Growers' Association which is engaged in processing, packaging and marketing citrus products, in addition to the production of chilled beverages sold under the Juciful label.
The Juciful trademark is owned by the association, which has an arrangement with Jamaica Citrus for the payment of royalties for products sold under the brand.
The property includes the factory located in Bog Walk, St Catherine, on approximately seven acres of land, as well as two additional parcels of land of about eight and a half acres with a concentrate processing plant, a chilled-juice plant, two chill rooms and three cold rooms. A natural water spring also serves the property.
Facing liquidity problems
Records show that the company has been facing liquidity problems since 2006 after borrowing $50 million from the Government to purchase fruit from farmers and a further $70 million, the following year, from the Development Bank of Jamaica. The loans are in arrears.
Jamaica Citrus Growers Association's ownership in Jamaica Citrus Growers Limited is held by Citrus Growers Associate Limited, which owns a majority of the 3.275 million shares in issue, according to Companies Office records. Another 14 million shares are held by 14 individuals.
Some 5,200 registered growers operate under the auspices of the Citrus Growers Association, representing the majority of citrus farmers.