NASSAU, BAHAMAS — The Water & Sewerage Corporation (WSC) slashed its debt to its main water supplier BISX-listed Consolidated Water to $13.5 million.
Consolidated Water in its quarterly report filing noted, “As of March 31, 2022 and December 31, 2021, CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the Water and Sewerage Corporation of The Bahamas (“WSC”) amounted to $21.2 million and $21.5 million, respectively.
The report continued: “From time to time, CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, we hold discussions and meetings with representatives of the WSC and The Bahamas government, and as a result, payment schedules are developed for WSC’s delinquent accounts receivable.
“All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has never been required to provide an allowance for doubtful accounts for any of its accounts receivable, despite the periodic accumulation of significant delinquent balances.”
The company noted that in February of this year it received correspondence from the Ministry of Finance that set out a payment schedule providing for the gradual reduction of the corporation’s debt to Consolidated Water over the course of 2022.
“Such correspondence also indicated that the Government intends to return all of CW-Bahamas’ accounts receivable from the WSC to current status. During the three months ended June 30, 2022, CW-Bahamas received approximately $16.4 million in payments on its accounts receivable from the WSC. As of June 30, 2022, CW-Bahamas’ accounts receivable from the WSC had been reduced to $13.5 million.”
The Cayman-based company in its second quarter results saw its total revenue increase by 26 percent to $21.1 million.
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