NASSAU, BAHAMAS — Consolidated Water recently noted that delays in collecting on nearly $20 million in receivables from the Water and Sewerage Corporation (WSC) have adversely impacted the liquidity of its Bahamas subsidiary.
The BISX-listed water supplier, in its annual year-end 10-K filing with the US Securities & Exchange Commission (SEC), noted: “CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $16.8 million and $18.4 million as of December 31, 2020 and 2019, respectively.
“Approximately 76 percent of the December 31, 2020 accounts receivable balance was delinquent as of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary.”
The company noted that historically, its Bahamian subsidiary has experienced delays in collecting its accounts receivable from 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,” the company said.
“All previous delinquent accounts receivable from the WSC 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.
“As of December 31, 2020, we have not provided an allowance for doubtful accounts for CW-Bahamas’ accounts receivable from the WSC.”
The company further noted it believes that the delays experienced in collecting CW-Bahamas’ receivables have been further extended by the impact of the COVID-19 pandemic on the economy of The Bahamas.