The company, which owns the Grand Bahama Yacht Club, the Grand Bahama Yacht Club Marina and the Port Lucaya Marina, was placed into receivership as a result of an investment company’s efforts to reclaim funds owed.
On Thursday, more than 20 former New Hope Holdings employees and particularly the Ferry House, which closed its doors one month ago, demonstrated in front of the Grand Bahama Yacht Club claiming that apart from not being paid since June, they were terminated from their jobs last month without any severance packages and back payments.
Former Ferry House Manager Natasha Darville, who recently had a baby, said the government should not allow investors to come into the country and treat Bahamians this way.
"I want to reach the government. I want to reach all of the MPs, the Opposition and the general public and let them know that we as Bahamians cannot continue to let employers come in here and invest and make whatever money they need to make and then when it is time for us to receive what is due to us, we can’t receive anything," she said.
"A receiver has been put in here and we don’t see what the receiver is doing for us. What about us? We still have to eat. We have bills to pay. We have children. No health insurance. No money and we’re supposed to go out there and find jobs? Everybody is trying. We are only a small part of the public who are looking for jobs at this time."
She said the government should be in a position where it can pressure New Hope Holdings to deal with this matter expediently so that they can get paid.
"Nobody is doing anything. No MP has contacted us. We have been pushing this. We have to do this because we are not getting any help from anyone. No help from New Hope Holdings and no help from the government," she said.
Trade unionist Lionel Morley, who is representing the group, is calling for the Minister of Labour to intervene.
"We are calling on the Minister of Labour to do the right thing and step in on behalf of these people whose families continue to go to bed without food, and who continue to have their [electricity] cut off. The law is very clear when it comes to termination. When you sever ties with someone, you pay them right away," he said.
"This stinks. They should make sure that first and foremost that these people understand exactly what is going on with this company. It has nothing to do with ownership and receivership."
He said that Bahamians are once again on the receiving end of injustice in the country.
"The Bahamian workers continue to suffer. Who is advocating and agitating? The pastors? The legal fraternity? No. They are giving advice to the employers and as a result, they are in parliament and everywhere continuing to be a hemorrhage on the backs and in the pockets of Bahamians people. We are saying today, enough is enough," Mr. Morley said.
In a telephone interview with Phillip Galanis, the court appointed receiver for New Hope Holdings, he said he sympathizes with those employees he had to let go and acknowledges that no severance packages were paid simply because there was no money to do so.
"I hate and I really, really do not like to terminate people. I do it as a last resort and I have been able to manage the company for nearly a year without having to lay anyone off or terminate anyone. Unfortunately, if the company does not generate sufficient revenues to pay the bills, then we cannot continue to incur bills. That is really what has happened," Mr. Galanis said.
"I sympathize with and I feel for the employees. They certainly were within their rights to protest. I understand it and there is nothing more I can do. It is completely and totally out of my control," he said.
However, some persons he said have been getting small payments in the interim.
"They did not get the severance payments because the severance money was not there. We have been paying them small amounts when we can for both those who have been terminated and persons who have continued to work at the company without pay. There are several managers who have not been paid in the past month or two," he said.
Mr. Galanis assured that the company is doing all it can to help generate new revenue to pay the employees.
"In the meantime, we also have to keep the electricity on and keep the telephones on and keep the company operational. In addition, we have homeowners who live there and we have to try to ensure that we meet the challenges as best we can. This is what happens in a receivership," he said.
"We would hate to think that the company would have to go through liquidation, but we are doing all we can to manage it given the limited resources that we have," he said.
He said it is unfortunate that the New Hope Holdings’ case will have to go to trial before any of this is truly resolved, and that will not happen until next year.
He also attributed the poor performance of Grand Bahama’s economy to the economic woes being experienced by the company.
"The economy in Freeport and in Grand Bahama generally, is extremely depressed. I think people can realistically refer to the economic conditions there as more of a depression and not a recession. As the receiver, I am instructed by the court to do all I can to protect the assets and keep the company operational as long as possible. That is what I have been doing," Mr. Galanis said.
He said that as receiver, he is trying to manage New Hope Holdings as best he can to prevent more of its companies from shutting down.
Mr. Galanis said that Tom Gonzales of T. G. Investment – the investor suing New Hope Holdings for millions of dollars invested in the business, has already poured $3.4 million dollars more into the company to help keep its doors open.
However, he said, he cannot do it anymore because he is uncertain of what the outcome of the court case will be.
The Supreme Court placed New Hope Holdings into receivership on October 2, following an ex parte summons filed on September 30, 2008 by T.G. Investment Limited, which is represented by attorney Maurice Glinton.
In a 12 page ruling, the Supreme Court ordered that Mr. Galanis of the accounting firm HLB Galanis Bain be appointed the receiver and manager of the property and the company’s assets until the case is dealt with.
It also ordered that Mr. Galanis collect and receive rents and profits of the business and manage any undertakings in connection with New Hope Holdings’ other properties.
It was also ordered that Mr. Galanis be given all licenses, permits and certificates and that business be carried out at the properties as usual so as to prevent their forfeiture or suspension.
In 2006, New Hope Holding Co. Ltd, announced that it was acquiring Port Lucaya Marina as part of the company’s $500 million, 70-acre waterfront expansion surrounding Bell Channel Bay.
The project included a 300 yacht slips (available by the day, week, month, year or even a 99-year lease) and 300 new luxurious waterfront condominiums, townhouses and private residences. Port Lucaya Marina is situated just across the bay from the Grand Bahama Yacht Club.
