CATEGORY:REGIONAL MATTERS ----------------------------- INSIDE GRENADA FRIDAY July 13,2007 by Wallace J.A Regional air carrier, Liat, has agreed in principle to buy-out the assets of its former rival, Caribbean Star – owned by Allen Stanford. The two regional carriers started off by initially discussing a merger, however, negotiations changed course and the two airlines began exploring the possibility of a cashless take-over of Caribbean Star’s assets. In return, Mr. Stanford was to receive 30% shares in Liat. As a precursor to the formalization of this agreement, both Liat and Caribbean Star commenced operating joint services since February this year. Last weekend, officials from both airlines met and negotiations took a new twist, resulting in Caribbean Star’s proposal for Liat to buy out its assets. In talking to the press, Mr. Mark Darby, CEO of Liat said that “…We agreed that it would probably be a cleaner deal all-round if we paid cash for the assets that would come across from Caribbean Star instead of exchanging shares." He said that his airline (Liat) has started doing well this year after being in a state of indebtedness for years. The actual cost of purchasing Caribbean Star’s assets has not been disclosed, but it is believed that a loan of US$60m that Liat is currently negotiating with the Caribbean Development Bank (CDB) should cover the expenses involved.