10092024 BUSINESS by tribune242

Bimini bust-up: Capo demands $600m damages from

By NEIL HARTNELL Tribune Business Editor

RESORTS World Bimini’s original developer is demanding its Genting partner pay more than $600m in damages for allegedly turning the project into a “financial wasteland” via a near-billion dollar liability “dump”.

The spectacular breakdown in the long-standing relationship between Gerardo Capo’s RAV Bahamas and the multi-billion dollar Malaysian conglomerate is revealed in a lawsuit filed with the south Florida federal court on Monday, with the former asserting that “a massive and co-ordinated fraud” has left the real estate and other assets it contributed to their Bimini partnership “essentially worthless”.

RAV Bahamas, which started development of the then-Bimini Bay resort in the late 1990s after

securing a Heads of Agreement with the Ingraham administration, is essentially accusing Genting of using its 78 percent majority ownership, plus Board and management control, to conceal how it funnelled hundreds of millions of dollars in liabilities incurred elsewhere in its global empire on to the Bimini resort’s books.

Complaining that this has undermined the value of its investment, while also “depriving” it of expected profits, RAV Bahamas claimed that Genting “has deliberately kneecapped” its attempts to gain a true understanding of Resorts World Bimini’s true financial position by denying “full access” to the property’s financial

Tackle ‘definition of insanity’ to diversify supply chains

By NEIL HARTNELL Tribune Business Editor

HURRICANE Milton and the recent US dock strike have exposed the urgency with which The Bahamas must diversify its supply chain and address “the definition of insanity,” its trade chief argued yesterday.

Philip Galanis, the Bahamas Trade Commission’s chairman, told Tribune Business that anticipated storm damage in Floridafollowing so swiftly behind the now-eased threat of industrial action - showed

• Trade chair: Non-offload in GB raising prices 20% • Milton, US dock strike ‘accelerate’ new route push • Talks with Brazil over direct transportation moves

why it must “accelerate” its search for new trade routes and facilitate the offloading of goods destined for this nation at the Freeport Container Port.

‘Anxious’ Dorianhit islands close commerce for Milton

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

COMMERCE was yesterday said to be shutting down in Grand Bahama and Abaco as “nervous” and “anxious” residents prepared for Hurricane Milton with memories of Dorian still fresh for many.

James Carey, the Grand Bahama Chamber of Commerce’s president, told Tribune Business there had been “a mild panic” as residents raced to stock up on essential food and other items but said he expected the storm will not do “too much worse than Grand Bahama Power Company” in terms of its impact on daily life.

Grand Bahama, as well as Abaco and Bimini, are expected to fell Milton’s outer tropical storm force winds if it remains on its present track. “We are always concerned about storms,” Mr Carey said. “We’re still in shock from the numerous hurricanes we’ve had over the last 25 years. I think everyone has prepared well

“It’s anticipated that we’ll have some tropical storm force gusts, which won’t impact us too much. I can’t see it doing too much worse than the Power Company has done in recent times. The way it’s going, I don’t see it being particularly impactful. I

He argued that the price of imported goods is being increased by as much as 20 percent through their transiting the Container Port’s transhipment facility on the way to US ports,

• Claims Resorts World turned into ‘financial wasteland’

• By Malaysian partner’s nearone billion liabilities ‘dump’

• Bimini’s anchor had $694m solvency deficiency in 2022

only to then be trucked down the east coast and shipped back to The Bahamas via Florida and other ports.

Branding this “the definition of insanity”, Mr Galanis told this newspaper that the Commission is also talking to Brazilian interests about creating

‘Lot of boaters upset’ over new $200 Immigration fee

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

AN ABACO resort and marina operator yesterday warned that “a lot of boaters are upset” over the newly-implemented $200 fee to extend visitor stays and the way it has been introduced.

Molly McIntosh, the Bluff House Beach Resort and Marina’s owner, told Tribune Business she, too, was unaware that the Immigration Department has from September 18, 2024, imposed a non-refundable $200 per person processing fee for tourists seeking to extend their stay in The Bahamas despite the measure being unveiled in the Budget.

“I wasn’t aware of it either until I saw a bunch of complaints on Facebook, and then a couple boaters contacted me by e-mail,” said Ms McIntosh. “It’s going to affect the business, I can tell you right now. A lot of boaters are upset about it. It’s going to be a problem.”

She said that while the Government should collect revenue

from visitors, she does not think the fee’s imposition will encourage tourism in the Family Islands.

Ms McIntosh added that guests travelling with a family will be reluctant to pay multiple processing fees and will be deterred from extending their stay.

“I don’t think it’s probably the best way to do that. I mean, I know we need money, and if the people want to come in here, we want to make sure they pay money,” said Ms McIntosh.

“We want them to come here so they’re spending money, and the Government can collect the VAT on that. If they’re not here, then it’s going to be a lot more of a loss than $200. Somebody that maybe would have stayed longer might just say that it’s not worth $200 per person.

“For a family of six that’s $1,200. I can do a lot with $1,200 and people from the States can do even more. Their money goes a lot further. So $1,200 is a lot.” Peter Maury, the Association of Bahamas Marinas (ABM) president, previously told Tribune Business that the sector and its

records and its calls for an independent audit. The financial statements for BB Entertainment, the Bahamianincorporated holding company for Resorts World Bimini, reveal that the project has consistently incurred annual losses amounting to tens of millions of dollars ever since RAV Bahamas teamed with Genting some 12 years ago in 2012.

BB Entertainment’s 2022 audited financials saw the EY (Ernst & Young) accounting firm qualify the report by noting a “material uncertainty related to

Milton ‘not our first rodeo’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BAHAMIAN resorts have not yet suffered “material cancellations” as a result of Hurricane Milton, a senior hotelier said yesterday, as he asserted: “This is not our first rodeo.”

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business that the threat posed to the industry’s major Florida source market by the Category Five storm had coincided with the traditionally slower period in the industry’s cycle to help minimise any negative impact. He spoke as Nassau Airport Development Company (NAD), Lynden

Pindling International Airport’s (LPIA) operator, confirmed that seven flights scheduled to arrive yesterday from Florida were cancelled, including four from Orlando International Airport and three from

SEE PAGE B4

ROBERT SANDS

GERARDO CAPO

RESORTS WORLD BIMINI

PHILIP GALANIS

GB BUSINESSES BRACING FOR ALL POSSIBLE MILTON OUTCOMES

By ANNELIA NIXON

GRAND Bahama businesses yesterday said they are prepared for all possible outcomes from Hurricane Milton after the potentially devastating Category Five storm crosses Florida.

James Rolle, Dolly Madison’s general manager, said the home improvement store has experienced an uptick in sales after the storm’s threat emerged.

Grand Bahama residents, though, have been well-prepared for hurricane season after Hurricane Dorian taught them not to take any storm lightly.

“And so, with the incredible Hurricane Milton, we have seen an uptake in shopping for hurricane supplies. People buying batteries and candles and flashlights, some radios, things like that. And so it tells us that at least the

residents of the island are alert and taking any warning of any storm seriously,”

Mr Rolle said.

“The events of Hurricane Dorian have caused people to realise that you don’t wait until the last minute to shop for certain items. And so hurricane items are no different from things that you would have around your home under the normal circumstances when the weather get bad.

“Your light go off, you need candles, you need batteries, stuff like that. And so people have been maintaining that kind of stuff in their homes, I guess, throughout the year. It’s just that when a hurricane comes, they just want to add more and to be more secure in terms of if there is a disaster where they need to use these items.”

Felicia Barbes, Third Dimensions manager, said the business is fully stocked and ready but customers

are having challenges get-

ting served in the rain. Therefore, she has not seen much of an increase in sales for lumber.

The manager of a supermarket based in Grand Bahama added that they have seen a slight rise in sales, saying: “It’s just moderate preparation and a state of readiness because anything can happen. So, basically it’s not the panic that’s a norm for a direct hit.”

Mr Rolle said Dolly Madison is ensuring its property is secured and allowing time for employees to get their homes prepared as well. “For us, we have a hurricane checklist that we make sure that, number one, if a storm does come by, that our properties are secured,” he said.

“We elevate items that are low. We make sure that vehicles are all gassed up. We make sure we put up our security, hurricane

BIMINI BUST-UP: CAPO DEMANDS $600M DAMAGES FROM GENTING

FROM PAGE B1

going concern”. It wrote:

“We draw attention to note two in the financial statements, which indicates that the company incurred a net loss of $151.284m during the year ended December 31, 2022.

“As of that date, the company’s current liabilities exceeded its current assets by $70.546m and had a net equity deficit of $693.665m. As stated in note two, these events or conditions, along with other matters as set forth in note two indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.

Our opinion is not modified in respect of this matter.”

That year’s $151.284m loss followed $114.22m worth of ‘red ink’ that Resorts World Bimini incurred in 2021, which both exceeded the $105.581m loss generated in 2020 when the COVID-19 pandemic was at its height and the $69.624m hit sustained in 2019.

BB Entertainment’s financials showed that, at year-end 2022, the company was effectively insolvent with some $191.511m in assets dwarfed by $885.176m in total liabilities to produce the $693.665m solvency deficiency. Of the $191.511m in total assets, the majority - $165.254m - represented the value of Resorts World Bimini’s real estate, with its holding entity possessing just under $3m in cash and equivalents.

The majority of BB Entertainment’s liabilities, some $795.452m, was described in the financials as “borrowings” from BB Investment Holdings, the entity through which Genting holds its 78 percent majority stake in the project. Some $578.848m of this sum was said to be “interest bearing” at a rate of Bahamian Prime plus 5 percent, which would be 9.25 percent.

It is unclear how RAV Bahamas lawsuit will impact Resorts World Bimini’s operations, with the hotel and associated amenities responsible for employing several hundred Bahamians and serving as the ‘anchor’ project and main economic activity driver for the island. However, the nature of the dispute between the project’s sole two shareholders, and Boardroom divide, can only be negative for all concerned.

One source who does business with Resorts World, speaking on condition of anonymity, said bluntly of the shareholder dispute: “I hope this doesn’t lead to catastrophe happening there.” Tribune Business efforts to yesterday obtain comment from Genting Americas proved fruitless.

This newspaper contacted its US offices, which said they would refer its inquiries to “legal”, and was then called itself by a PR firm acting for Genting. Upon explaining the nature of the inquiry, this newspaper was told they would try to get someone from Genting Americas to call back but

shades and whatever. And we just make sure that our staff associates, OK, that they are prepared.

“So we remind them even at the beginning of the season to prepare themselves and have the basic hurricane supplies at hand. We give them time off, like now. We would allow our staff to have extra time to tie up any loose ends in terms of preparation that they need to do with their homes.”

Ms Barbes said she is working with employees, granting the necessary time to them for storm readiness and preparation. She added that their building is a metal one and requires few shutters. Depending on the weather, Third Dimension may adjust its hours. However, Ms Barbes said the store will more than likely be open today.

BAHAMIAN AIRLINES HALT FLORIDA FLIGHTS ON MILTON

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

SEVERAL Bahamian airlines yesterday confirmed they have suspended flights to Florida due to Hurricane Milton’s imminent arrival.

Western Airlines said it has suspended flights into Fort Lauderdale until Friday as the potentially devastating Category Five storm approaches Florida’s west coast.

Flights from Nassau to Fort Lauderdale scheduled for today and tomorrow were suspended, while those from Grand Bahama were also cancelled with service expected to resume on Friday. The airline said passengers can change their flights without fees or penalties.

“Please be advised that the following flights have been

impacted by the impending Hurricane Milton,” said Western Air’s statement.

“Your safety remains our first priority and we’re monitoring the storm closely. Passengers are being contacted directly and, as always, all passengers are permitted to change their flight without fees or penalties.”

Western Air said flight times from Nassau to northern islands such as Grand Bahama, Abaco and Bimini may be adjusted today and tomorrow depending on the weather. Normal flight operations should resume on Friday.

Bahamasair also announced that flights will be suspended to Orlando today and tomorrow, and to West Palm Beach on Thursday. It added that flights into Grand Bahama and Abaco may be adjusted

no response was received before press time.

Setting out the crux of its complaint, RAV Bahamas alleged in its lawsuit: “To date, BB Entertainment has not distributed any profits to RAV from this venture because Genting Americas, who controls BB Entertainment’s finances, has used BB Entertainment as its financial wasteland.

“Through its stranglehold over BB Entertainment and its finances, Genting Americas has used BB Entertainment to conceal a medley of fraudulent activities.” Detailing at least five such sins, Mr Capo and RAV Bahamas said that, through their minority interest in Resorts World Bimini, they have been forced “to absorb 22 percent of various costs and expenses illegitimately shifted in to BB Entertainment’s” accounts.

“What is clear is that Genting Americas’ fraudulent accounting practices have drowned BB Entertainment in hundreds of millions of dollars in illegitimate debt,” RAV Bahamas blasted. “BB Entertainment’s 2022 audited financial reports reflect total liabilities of nearly a billion dollars ($885.176m).

“Only a massive and coordinated fraud could dump nearly a billion dollars of debt on a small island resort where RAV had already developed most of the significant infrastructure.

Genting Americas buried the nearly-billion dollar liabilities in consolidated statements using vague categories of expenses to conceal the fraud from RAV.

“Genting Americas, at every turn, has deliberately kneecapped RAV’s efforts to obtain clarity into the financials, including denying RAV full access to BB Entertainment’s financial records and denying its requests for an independent audit,” RAV Bahamas continued.

“This lawsuit seeks the damages that Genting Americas’ continuing fraud has caused, which include but are certainly not limited to rendering RAV’s contribution to BB Entertainment - the 20 acres of land - entirely worthless.”

As a result, Miami-based Mr Capo and his development vehicle are demanding that the south Florida court award damages that “exceed $600m”.

The lawsuit asserted that Mr Capo first met Genting’s

chairman, KT Lim, and “right-hand” man, Colin Au, more than a quarter-ofa-century ago in 1998 when the Bimini project was in its infancy. It claimed that both men voiced interest “in pursuing a venture with RAV” on the island but no deal materialised.

This interest did not reignite until 2011, and after RAV Bahamas had itself already constructed “villas, marinas, recreational areas, retail and other amenities in North Bimini” to form Bimini Bay. Discussions between Mr Capo and Genting resumed after the latter invited him to a party “to celebrate the Genting Group’s purchase of the Miami Herald building and surrounding properties in downtown Miami - the Hilton and Omni hotels”.

After a series of talks in 2012, RAV Bahamas and Genting agreed to partner to further develop the thenBimini Bay by creating BB Entertainment as the project’s holding vehicle. The two were initially 50/50 partners but, by end-December 2015, RAV Bahamas’ stake was “diluted” to 22 percent with the Malaysian conglomerate taking majority ownership.

In return for its minority stake, RAV Bahamas agreed to transfer to BB Entertainment a total of 20 acres upon which Resorts World Bimini sits. The first four-acre parcel was allegedly valued at $12m, which was described as “a capital contribution” to the Resorts World holding vehicle, with the final 16 acres valued at $25.5m when transferred in September 2014. Collectively, the real estate was valued at $37.5m.

RAV Bahamas said it received $12m in cash for the second land transfer, with the $13.5m balance recorded as another “capital contribution” to BB Entertainment. Combined, the two capital contributions stood at $25.5m.

“In addition to its land contributions, RAV Bahamas transferred governmental licenses and approvals to BB Entertainment, or otherwise assisted BB Entertainment in acquiring them as necessary,” the lawsuit alleged.

“Currently, BB Entertainment owns an island resort comprised of a 10,000 square foot casino, a 305-room hotel with surrounding restaurants, lounges,and a jetty used to dock cruise ships. BB Entertainment’s resort is branded and advertised as ‘Resorts World Bimini’.”

Using words such as “labyrinth” and “vast and deliberately tangled web” to describe Genting’s corporate structure, which allegedly features 150 different subsidiaries, RAV

Bahamas claimed: “Ultimately, Genting Americas used Genting Group’s corporate structure to saddle BB Entertainment with almost a billion dollars of illegitimate debt, effectively wiping out any value from RAV’s investment in BB Entertainment.”

It alleged that this was achieved through Genting exploiting its majority ownership, and Board and management control, to shift millions in liabilities incurred elsewhere in its empire on to the books of the Bimini resort. And two entities formed to manage the resort and casino, namely RWBB Resort Management and RWBB Management, were alleged to serve Genting’s interests rather than both shareholders equally. Breaking down Resorts World’s Bimini’s financial performance since it partnered with Genting in 2012, RAV Bahamas asserted that the $22.224m average annual revenues generated for the ten years to 2022 were dwarfed by an average $63.684m in operating expenses. When the annual $25.403m interest (debt servicing) bill was added, total expenses averaged $89.087m per year.

“Only an outright fraud can explain how a small island resort that averaged $22m in revenue per year for ten years can accumulate almost a billion dollars of debt in that same span (an average of $89.907m in debt (sic, costs) per year),” RAV Bahamas alleged. “No commercially reasonable actor would incur $89m of costs and interest per year to operate a small hotel that generates $22m in revenue per year.

“As of December 31, 2022, Genting Americas had managed to drown BB Entertainment with a staggering $885.176m of liabilities or debt. To put Genting Americas’ plundering in perspective, as of December 31, 2022, Genting Malaysia (which has over 150 subsidiaries, including BB Entertainment) had a total of approximately $803.972m in liabilities.

“Stated differently, as of December 31, 2022, BB Entertainment’s liabilities were greater than the combined liabilities of Genting Malaysia and its approximately 150 subsidiaries ($803.972m). Not surprisingly, 99.4 percent of BB Entertainment’s total liabilities in 2022 constituted monies owed to Genting Malaysia’s subsidiaries.” RAV Bahamas, challenging assertions in BB Entertainment’s financial statements that the annual accounts from 2013 to 2022 had all been approved by the latter’s Board of Directors, said they were never sent its Board representatives and that the Board did not meet on the days given. For the first few years it claimed Genting concealed Resorts World’s performance by only providing financial “summaries”.

Amid concerns that Resorts World Bimini was not achieving Genting’s financial projections, with

the 2016 operating Budget allegedly over-estimating revenue performance by 120 percent and underestimating costs by 40 percent, RAV Bahamas said it moved to have “closer oversight” of the financials. However, it claimed Genting failed to deliver on promises to address an “exorbitant expense structure”.

“Notably, at the January 25, 2019, BB Entertainment Board Meeting, Genting Americas presented a budget showing that BB Entertainment would only lose $19m in 2019, yet BB Entertainment went on to lose $69m in 2019,” RAV Bahamas asserted.

Then, at a March 3, 2020, Board meeting it alleged that Genting Americas “admitted that it had been ‘overcharging’ BB Entertainment for the salaries of other Genting affiliates’ employees”. And, when RAV Bahamas pointed to the debt owed to the Bimini Superfast ferry operations, it claimed a Resorts World executive made a major admission.

“In response, Edward Farrell - who at the time occupied a..... role as Genting Americas’ president, BB Entertainment’s president, RWBB Management’s president and RWBB Resort Management’s president—admitted ‘there was about $150m in expenses that we [Genting Americas] could not figure out what to do with, and they ended up in BB Entertainment’s books’,” RAV Bahamas claimed.

Alleging that its efforts to obtain better and greater financial information on Resorts World Bimini were repeatedly frustrated, RAV Bahamas said it only learnt this year that Genting Americas was exploring the resort’s potential sale.

“During the March 2024 shareholders’ meeting, RAV learned that Genting Americas had ‘approached realtors’ in an effort to sell BB Entertainment’s resort. It was at that time that RAV realised that Genting Americas’ plan was to sell the BB Entertainment resort without ever addressing or rectifying the massive misallocations of debt and expenses reflected in BB Entertainment’s financial records,” it claimed.

“Because the estimated value of BB Entertainment’s resort is substantially less than the approximately $900m in liabilities that remain on BB Entertainment’s financials, Genting Americas has effectively deprived RAV of the entire value of RAV’s over 20-acre contribution without having ever received any return for that contribution.

“Genting Americas has also deprived RAV of any upside or profit from the sale of BB Entertainment’s resort. After the March 2024 shareholders’ meeting had adjourned, RAV made its final demands for Genting Americas to correct its accounting but, to date, Genting Americas has failed to do so.”

CONSUMERS WARNED: BRACE FOR MILTON SHIPPING DELAYS

By FAY SIMMONS

COURIER companies yesterday warned consumers to brace for delays in receiving their goods as Hurricane Milton disrupts air cargo and ocean freight traffic from Florida.

Wendy Rolle, general manager at C2G Shipping, said there are delays in receiving packages from Florida as storm warnings have cancelled flights and forced warehouse closures. She added that the Florida warehouse that services the company is taking the safety of its employees seriously and halting shipment releases until they are given the all-clear.

“There are delays. The warehouse in the States is taking every safety measure for the employees over there,” said Ms Rolle. “We’re just waiting on an ETA (estimated time of arrival) update on when the coast has cleared

and they will be able to fly in. The weather is playing a major factor right now and you know we can’t override Mother Nature.”

Randia, a manager at Just Ship It, said its cargo shipment scheduled for today is set to suffer a “huge delay” as flights are likely to be cancelled. She added that the company is already experiencing delays in its shipping process but will have to wait until the all-clear is given for flights to resume.

“We are experiencing a few delays in our shipping process,” she said. “I’m not sure exactly when it will hit them, but as it stands right now, we do have a few delays in our shipping schedule.

“We have three three flights a week, Monday, Wednesdays and Fridays. Our Wednesday shipment is going to have a huge delay. The weather is going to stop them from flying out but they won’t really be able to confirm until tomorrow.”

Mr Stewart, manager at Ace Hardware, said the company is experiencing delays in receiving goods from

suppliers in Florida, which is normal during severe weather conditions. “It’s the regular thing that our shipments are delayed due to a tropical storm or hurricane that affects our suppliers,” he said.

Suppliers will not be able so ship any goods until weather conditions improve, and Ace Hardware was unable to receive a shipment before they stopped operations. “Our suppliers cannot ship anything out until the weather has subsided,” he explained.

“Our suppliers in Florida are on hold. So, if they’re on hold then we’re on hold with what we get in. We were trying to get some stuff in before, but that didn’t happen so we’re just hanging tight until they can ship it out.”

Hurricane Milton is currently a Category Five hurricane that is expected to make landfall along Florida’s west coast on Wednesday night. Addressing the country last night, Prime Minister Philip Davis KC said the Department

of Meteorology has issued a tropical storm warning for Abaco, Bimini, Grand Bahama and the surrounding cays.

“Hurricane Milton continues to strengthen as it approaches the western coast of Florida, and is currently a Category Five hurricane,” said Mr Davis.

“The Met Office has upgraded the status for islands in the northern Bahamas from a ‘tropical storm watch’ to a ‘tropical storm warning’. This means that tropical storm conditions are expected within the next 36 hours on the islands of Abaco, Bimini and Grand Bahama, and the surrounding cays.

“While the threat is not as significant as that of the hurricane threat posed to our neighbours in Florida, we still need to take it seriously.” Mr Davis said heavy rainfall and excessive flooding is expected in Andros,

the Berry Islands, New Providence and Eleuthera.

“The Met Office advises that, as Hurricane Milton passes over Florida, tropical storm winds will be experienced on Abaco, Bimini and Grand Bahama and the surrounding cays,” said Mr Davis.

“These islands have already experienced excessive rainfall since Sunday from another storm system. And so the ground is already saturated with water.

“Heavy rainfall has also been experienced on other islands in recent days, namely on Andros, the Berry Islands, New Providence and Eleuthera. And now the rainfall from Hurricane Milton is expected to intensify, especially overnight on Wednesday. The Met Office advises that as a result there is likely to be extensive flooding. Take whatever precautions are necessary to protect yourselves.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, CYRIL ROLLE, of Steventon, Exuma, The Bahamas, intend to change my name to CYRIL EDWARD ROLLE If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of publication of this notice.

Milton ‘not our first rodeo’

Fort Lauderdale International Airport.

It added that further cancellations are expected today as the airports in Tampa and Orlando close ahead of the potentially

devastating hurricane’s arrival on Florida’s west coast, while delays are also expected for flights to and from Miami International Airport and Fort Lauderdale International Airport. Mr Sands, meanwhile, told this newspaper that

NOTICE

FOREVER VICTORIOUS LIMITED

N O T I C E IS HEREBY GIVEN as follows:

(a) FOREVER VICTORIOUS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said company commenced on the 8th October, 2024 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

Dated this 9th day of October, A. D. 2024

Bukit Merah Limited Liquidator

N O T I C E IS HEREBY GIVEN as follows:

apart from “the welfare and safety” of Florida residents directly in Milton’s path his greatest concern is it may disrupt the supply of goods and services that an import-dependent Bahamas relies on so heavily as well as dent post-hurricane travel demand from the state.

“The hotels have not had any material impact in terms of cancellations,” the BHTA president said. “We continue to monitor it and we’re working with all the different parties. We have to wait and see. The bigger concern is the safety of those in the hurricane’s path. Their welfare and safety comes first, and we pray there’s no disruption to the supply chain for goods and services coming out of Florida to The Bahamas.

“That would be anybody’s concern. We need those elements to continue to work, but at this moment in time we are told suppliers are putting in place contingency plans to address anything that may arise as a result of this hurricane coming through central Florida.”

Airlift into and out of The Bahamas will likely face further disruption for the remainder of this week, making it difficult for visitors to both enter and exit

this nation. Mr Sands, though, voiced optimism that airlines, resorts and other tourism operators will make adjustments as necessary, while tourists will either delay or rebook their travel plans.

“This is an event that is taking place very quickly, it’s moving very quickly,” he added. “It’s not at a time when it’s our highest demand. This is something we are used to. It’s not a new phenomenon for us. Companies will make adjustments, and persons will either delay or rebook their arrangements.

“The important issue is there’s not any major damage to to our source market and any damage to commerce that may impact us. It’s wait and see. It’s not our first time in this rodeo. We’ve done this many times over. Our focus is on Florida, and we hope there’s minimal damage and disruption and the relationship with inbound and outbound tourism continues to flow soon after the passage of this storm.”

Silver Airways, which serves The Bahamas from numerous Florida gateways, has already announced it will “waive” change fees and fare differences for

customers due to travel between Tuesday, October 8, 2024, and Thursday, October 10, who will now have to rebook due to Hurricane Milton

Leonard Sands, the Bahamian Contractors Association’s (BCA) president, told Tribune Business that this nation was in no immediate danger of suffering from construction materials shortages as suppliers had reassured him they have “got everything they need” on island for at least the next two weeks.

However, he conceded this outlook may have to be reassessed depending on the level of devastation that Milton inflicts in Florida.

The BCA chief said extensive damage would mean building materials normally available for shipping to The Bahamas would instead be diverted to Florida’s recovery, thereby leading to potential shortages and price hikes here.

“For right now, there is no immediate impact,” Leonard Sands said of Milton.

“We have to wait and see. Right now we have not seen any immediate impact on the level of supply of goods and services and materials.

That’s because the supply chain was pretty solid this year with no disruption.”

He explained that the damage inflicted by Hurricane Helene, which struck northern Florida as well

as Georgia, parts of the Carolinas and the Appalachian mountain range, will not impact the availability of building materials for The Bahamas because the rebuilding there will be served by resources obtained from more northerly states such as Kentucky. Milton, though, last night was continuing to take aim at central Florida. “It will have some impact, but how much impact is too hard to tell, too early to tell,” Leonard Sands said. “If it causes widespread damage across Florida, which we hope doesn’t happen, we will most likely see disruption in supplies to The Bahamas and we’ll be challenged where we get those materials from.

“Central Florida is where a lot of building supplies come from. But we did a bit of checking, and all around everyone [construction material suppliers] is pretty good on stock. It will take a couple of weeks for everyone to run out, and then our challenge may become that we run out and we have difficulties getting it replaced.

“That’s not a problem right now. We’ll have to reassess after this storm and see what the damage is, and that may determine a different outcome. Right now, suppliers feel comfortable they’ve got everything they need. Everyone has good stock right now. It’s too early to tell, too early to tell.”

BAHAMIAN AIRLINES HALT FLORIDA FLIGHTS ON MILTON

FROM PAGE B2

(a) STARSHIP HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said company commenced on the 8th October, 2024 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Leeward Nominees Limited, of Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, British Virgin Islands VG1110.

Dated this 9th day of October, A. D. 2024

Leeward Nominees Limited Liquidator NOTICE STARSHIP HOLDINGS LIMITED

as necessary on Thursday based on weather conditions.

“The public will be advised of any further schedule adjustments due to weather conditions,” said Bahamasair. “Passengers requiring changes to travel itineraries related to these flights can change their flight arrangements without change fees. Flight itineraries to and from Miami and Fort Lauderdale for these dates can also be changed without change fees.”

Nassau Airport Development Company (NAD) said Lynden Pindling

International Airport (LPIA) remains fully operational and will work with airline partners to manage flight schedules and minimise disruptions.

The LPIA operator encouraged passengers to stay updated on their flights by checking in directly with the airlines for real-time information. “We are closely monitoring the impact of Hurricane Milton on the state of Florida,” said NAD. “Passengers travelling to and from Lynden Pindling International Airport (LPIA), particularly to destinations such as Tampa, Orlando, Miami and Fort Lauderdale, may experience delays or cancellations.” Hurricane Milton is currently a Category Five hurricane that is expected to make landfall along Florida’s west coast on Wednesday night.

Addressing the country last night, Prime Minister Philip Davis KC said the Department of Meteorology

has issued a tropical storm warning for Abaco, Bimini, Grand Bahama and the surrounding cays.

“Hurricane Milton continues to strengthen as it approaches the western coast of Florida, and is currently a Category Five hurricane,” said Mr Davis.

“The Met Office advises that, as Hurricane Milton passes over Florida, tropical storm winds will be experienced on Abaco, Bimini and Grand Bahama and the surrounding cays,” said Mr Davis.

“These islands have already experienced excessive rainfall since Sunday from another storm system. And so the ground is already saturated with water.

TACKLE ‘DEFINITION OF INSANITY’ TO DIVERSIFY SUPPLY CHAINS

direct shipping routes to The Bahamas from the South American country in a bid to diversify the country’s supply chain and reduce import costs through lower shipping/freight expenses.

Voicing optimism that

The Bahamas will escape significant trade disruption from Milton, due to the number and variety of ports that service this nation, the Trade Commission chair said supply chain diversification was “the first thing I thought of” when both the Category Five hurricane and now-ended US dock workers strike both emerged as major potential threats.

“My mind really pivoted to South America generally, and principally Brazil, because we are in discussions

right now with them about trying to implement transportation directly to The Bahamas from Brazil,” Mr Galanis confirmed. “These are obvious examples of why these alternatives need to be available to us.

“It also accelerates the need for us to be able to offload goods in Grand Bahama as opposed to having them transit to North America and be trucked back down the east coast and shipped here. It’s the definition of insanity. We are increasing the cost as much as 20 percent by getting goods into The Bahamas via that route.

“We’ll make recommendations to the Government. That is the role of the Trade Commission; to find ways and means of facilitating these kinds of

NOTICE

MAFER INVESTMENT LTD. (In Voluntary Liquidation)

Notice is hereby given that the abovenamed Company is in dissolution, commencing on the 4th of October 2024. Articles of Dissolution have been duly registered by the Registrar. The liquidator is AMICORP BAHAMAS MANAGEMENT LIMITED, of Nassau Bahamas.

Dated this 7th day of October 2024

AMICORP BAHAMAS MANAGEMENT LIMITED LIQUIDATOR

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000 CRYNAM INVEST SA (IN VOLUNTARY LIQUIDATION)

NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, CRYNAM INVEST SA is in dissolution.

The dissolution of the said Company commenced on 8th October 2024, when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.

The sole liquidator of the said Company is Kim D Thompson of Equity Trust House, Caves Village, West Bay Street, P O Box N 10697, Nassau, Bahamas.

Kim D Thompson Sole Liquidator

NOTICE In the ESTATE OF RICARDO WILFRED TREVOR HOLMES, late of Lynden Pindling Estates in the Eastern District of the Island of New Providence on the Island in the Commonwealth of the Bahamas, deceased.

IT IS HEREBY NOTIFIED for the information of those having claim or demand against the said Estate, are required to send same to the undersigned on or before 31st day of October, A.D. 2024 and if so required by notice in writing from the undersigned to come in and prove such demand or claim or in default thereof be excluded from the benefit or any distribution made before such debts are proved. AND NOTICE is hereby given that all persons indebted to the said ESTATE are requested to settle their respective debts at the Chambers of the undersigned on or before the date hereinbefore mentioned.

Dated 2nd day of October A.D. 2024

CALLENDERS & CO.

CHAMBERS One Millars Court P.O. Box N-7117 Nassau, The Bahamas

Attorneys for the Personal Representative (O. 9)

arrangements.... We really have to find alternative means of shipping and transportation to The Bahamas from the point of sale.”

Describing the anticipated impact from Milton and the short-lived US dock workers strike as “reminiscent of COVID”, and the supply chain backlogs, shortages and price increases that resulted, Mr Galanis said of the progress in finding alternative trade routes: “We’re working on it.

“It’s constantly on our agenda. We are talking to a number of stakeholders in different countries to try and make it happen. It’s a work in progress. I hope within the next year to see significant improvement in that regard.”

Asserting that Milton and the US dock strike have reinforced how vulnerable The Bahamas and its economy remain to external events, Mr Galanis reiterated: “It really accelerates that need for us to be able to find

solutions that are workable, that are pragmatic and are sustainable.

“That’s what we’re about at the Trade Commission, doing all those things. It’s really something we can do to make a difference in people’s lives. The price of goods is not a statistic. These are real dollars and cents. The more we are able to save on transporting goods to The Bahamas, the more we are able to save at the consumer level provided wholesalers and retailers pass those savings on to the consumer.

“That’s another story for another time, and at some point we’ll be able to address that aspect of it, passing savings on to the consumer.”

And the Trade Commission chair said recent events should also give extra impetus for The Bahamas to focus more on growing its food security and producing more domestically.

“All this really accelerates, and really enlarges and magnifies, the extent to which we

need to address food secu-

rity in The Bahamas,” he told Tribune Business, “and find replacement goods for what we import. Agriculture and fisheries is an area we need to focus on. We need to no longer pay lip service to it. We need to make progress on both those fronts.”

Focusing on Milton specifically, Mr Galanis said much will depend on how wide and devastating is the damage it inflicts, and “what alternative transportation routes we can find to get goods to The Bahamas. It clearly demonstrates how external events can impact domestic performance, and how it impacts your life every day”.

The Bahamas, as a small, open economy that is highly dependent on imports for virtually everything it consumes is especially vulnerable to trade-related disruptions caused by the likes of strikes, pandemics and hurricanes.

“We’re going to have to hold our breath on this one

and hope damage to life and property is minimal,” Mr Galanis told Tribune Business. “I think we’ll be OK, though. I really do think we’ll be OK. No matter what happens there is the possibility of rapid recovery as the US has the financial resources to respond swiftly and provide alternative shipping routes.

“We get goods from North Florida, Savannah and Georgia, and some things we get from New York and New Jersey. I think we’ll be OK. Any climate change denier should take stock of what’s going on. How many times have we seen these very powerful hurricanes develop in the Gulf of Mexico? They usually come out of Africa and the Caribbean. You never see them develop in the Gulf of Mexico. Mother earth is speaking, so we’d better listen.”

NOTICE is hereby given that COSTA PIERRE #6 Grove Street, New Providence, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 9th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

‘Lot of boaters upset’ over new $200 Immigration fee

clients were blindsided by the September 18, 2024, implementation of the fee.

Describing the move as “anti-tourism”, on the basis that the fee effectively penalises visitors for staying in The Bahamas longer and spending more money in local communities, he argued that it had compounded boating/ yachting perceptions that the country is becoming cost “prohibitive” following the recent imposition of higher yacht charter levies and other increased taxes and fees.

Mr Maury told this newspaper that the September 18 implementation, which was accompanied by little to no warning, had undermined ABM, industry and Ministry of Tourism,

‘ANXIOUS’

Investments and Aviation efforts to attract high-end boats and yachts to The Bahamas and away from the Mediterranean through their attendance one week later at the Monaco Boat Show.

However, the ABM chief admitted he was “unaware” that Prime Minister Philip Davis KC had warned the measure was coming when he unveiled the 2024-2025 Budget at the end of May. “The Immigration Department will also implement a Visitors Stay extension application fee of $200. This will cover the costs of issuing a visitors’ card,” Mr Davis explained. It is standard practice for the Immigration Department to charge a non-refundable processing fee - whether $200 or another sum - to cover

DORIAN-HIT ISLANDS CLOSE COMMERCE FOR MILTON

understand there’s a bit of a mild panic on the ground with people getting prepared but that’s not surprising.”

Mr Carey, who is presently on a business trip in Canada, said Milton’s emergence shows the fallout from climate change “is very real regardless of what the naysayers are saying”. He added: “I’ve lived in Freeport for 45 years, and at the beginning of my stay there in winter time we were getting temperatures down in the 40s. We’ve not seen that for many years now. Our winters can best be described as mild.

“I had a lot of second thoughts about making this trip. I left Freeport on Sunday and had a lot of second thoughts about it, but ultimately looking at the projected track I decided to make the trip because it was not possible to delay it based on its nature.”

Daphne DeGregoryMiaoulis, Abaco’s Chamber of Commerce president, similarly told Tribune Business that commercial activity on the island was much reduced yesterday as residents prepared for Milton. “There is obviously quite a bit of anxiety and people are obviously nervous,” she said. “The town is quiet except for the supermarket where everyone is stocking up.

“The food shelves are quite empty. I’ve just come from one myself. Nobody is putting up any shutters but everyone is in that anxious mode. There’s no proper hurricane shelter other than the shelters that have been repaired and the ones that existed in the last hurricane.

“We’re going to get a blow, maybe 30 to 40 mile per hour winds but no more than that, which is OK. We can handle that but it doesn’t make anyone feel more comfortable until it’s done and over. Tampa is really going to take a bad beating. I have friends and family there, and after what they saw with Helene they are definitely terrified,” Mrs DeGregory-Miaoulis continued.

“Anyone who doesn’t understand we are suffering the effects of climate change is completely

ignorant because hurricanes can now go from Category One to Category Five in a flash; in a 24 hour period and be so massive.”

KC said the Department of Meteorology has issued a tropical storm warning for Abaco, Bimini, Grand Bahama and the surrounding cays.

“Hurricane Milton continues to strengthen as it approaches the western coast of Florida, and is currently a Category Five hurricane,” said Mr Davis.

“The Met Office advises that, as Hurricane Milton passes over Florida, tropical storm winds will be experienced on Abaco, Bimini and Grand Bahama and the surrounding cays,” said Mr Davis.

“These islands have already experienced excessive rainfall since Sunday from another storm system. And so the ground is already saturated with water.

the costs, and recover the expense, associated with various permit application types. And The Bahamas, like all sovereign states, has the right to at all times regulate and manage its borders, determine who is within its territory and decide how long it will permit them to stay. And the $200 one-time fee, in and of itself, is hardly a huge sum for visiting tourists and boat crews to pay if they decide to extend their stay and original cruising permit.

However, Mr Maury said the new $200 fee has added “inconvenience” to the process as the Immigration flyer confirming its September 18, 2024, introduction appears to require all applicants to now “book an appointment” via the Department’s website

and physically attend in person to obtain the extension of stay. This also has to be accompanied by the cruising permit, proof of payment and contact details.

The ABM chief also complained that cruising permit and visitor stay applications are often not aligned, with a vessel sometimes allowed to enter The Bahamas for three months as an example but guests and crew only given permission for 30 days.

Ms McIntosh, meanwhile, said her resort is closed until later this month and the remaining staff have already made preparations ahead of Hurricane Milton. She remained hopeful that Abaco will not experience significant damage from the storm’s passage as the island has only recently

begun to rebound from the devastation caused by Hurricane Dorian. “The resort is closed, we don’t have any guests here and most of the staff is on vacation,” she explained.

“I’ve only got about four staff here. We had already shuttered up when we closed down for the season.

We’ve put all the furniture in. I’m going to be here on property during the storm. We imagine the power is going to go off and hopefully it won’t last too long.

“We’re looking forward to the preseason when we do open. Hopefully the storm doesn’t do too much damage. We’re got our fingers crossed that we get through this unscathed.”

Ms McIntosh said that due to shipment delays as a result of Hurricane Helene and Hurricane Milton, she

has not received the supplies needed to undertake repairs and remodelling at the resort while it was closed.

“The weather has caused us some issues because this is the time we do some repairs and rebuilding and remodelling, and our stuff is stuck in Florida,” said Ms McIntosh. “So, it has had an effect, and we’ll have to dance around that and figure it out, because we’ve got guests coming in as soon as we open.”

Hurricane Milton is currently a Category 5 hurricane that is expected to make landfall along Florida’s west coast tonight. The Department of Meteorology has issued a Tropical Storm Warning for Abaco, Bimini and Grand Bahama, and the surrounding cays.

Wall Street rebounds after Hong Kong stocks fall to worst day since 2008

By STAN CHOE AP Business Writer

U.S. stocks rebounded Tuesday after falling oil prices released some of the pressure that built up on the market.

The S&P 500 rallied 1% to claw back all of its loss from the day before. The Dow Jones Industrial Average rose 126 points, or 0.3%, and likewise neared its record set last week, while the Nasdaq composite led the way with a 1.4% rally.

Wall Street held firm even though stock markets around the world sank following scary swings in China, as euphoria about possible stimulus for the world's second-largest economy gave way to disappointment. Stocks tumbled 9.4% in Hong Kong for their worst day since the 2008 global financial crisis.

Helping to support Wall Street was a sharp drawdown in oil prices. They gave back some of the big recent gains they made on worries that worsening tensions in the Middle East could ultimately lead to disruptions in the flow of oil.

A barrel of Brent crude, the international standard, fell 4.6% to $77.18 for its first loss in a week and a half. A barrel of benchmark U.S. crude, meanwhile, eased 4.6% to $73.57.

That also helped level off the pressure on the stock market from the bond market. Treasury yields eased

a bit, a day after they shot to their highest levels since the summer.

The 10-year Treasury yield edged down to 4.02 from 4.03% late Monday. The two-year yield, which more closely tracks expectations for what the Federal Reserve will do with overnight interest rates, slipped to 3.96% from 3.99%, late Monday, though it's still near its highest level since August.

When Treasurys are paying higher yields, investors generally become less willing to pay very high prices for stocks and other investments. And Treasury yields had been storming higher over the last week following a suite of reports showing the U.S. economy remains healthier than expected.

Such reports, including one last week showing stronger hiring by U.S. employers than forecast, raise hopes that the economy will avoid a recession. But they also force traders to ratchet back expectations for how much the Federal Reserve will cut interest rates by, now that it has widened its focus to include keeping the economy humming instead of just fighting high inflation.

Traders have abandoned expectations for the Fed to cut its main interest rate by a larger-than-usual half of a percentage point at its next meeting, for example. Instead, they're largely betting on a traditional-sized cut of a quarter of a

TIKTOK IS DESIGNED TO BE ADDICTIVE TO KIDS AND CAUSES THEM HARM, US STATES’ LAWSUITS SAY

By HALELUYA HADERO and BARBARA ORTUTAY

MORE than a dozen states and the District of Columbia filed lawsuits against TikTok on Tuesday, saying that the popular short-form video app is designed to be addictive to kids and harms their mental health. The lawsuits stem from a national investigation into TikTok, which was launched in March 2022 by a bipartisan coalition of attorneys general from many states, including New York, California, Kentucky and New Jersey. All of the complaints were filed in state courts. At the heart of each lawsuit is the TikTok algorithm, which powers what users see on the platform by populating the app's main "For You" feed with content tailored to people's interests. The lawsuits note TikTok design features that they say addict children to the platform, such as the ability to scroll endlessly through content, push notifications that come with built-in "buzzes" and face filters that create unattainable appearances for users. "They've chosen profit over the health and safety,

well-being and future of our children," California Attorney General Rob Bonta said at a news conference in San Francisco. "And that is not something we can accept. So we've sued."

The latest lawsuits come nearly a year after dozens of states sued Instagram parent Meta Platforms Inc. in state and federal courts for harming young people and contributing to the youth mental health crisis by knowingly and deliberately designing addictive features that keep kids hooked on their platforms. Keeping people on the platform is "how they

generate massive ad revenue," District of Columbia Attorney General Brian Schwalb said in an interview. "But unfortunately, that's also how they generate adverse mental health impacts on the users."

The legal challenges, which also include Google's YouTube, are part of a growing reckoning against social media companies and their effects on young people's lives. In some cases, the challenges have been coordinated in a way that resembles how states previously organized against the tobacco and pharmaceutical industries.

percentage point, according to data from CME Group. Some are even calling for the possibility the Fed could keep its main rate steady in November.

High Treasury yields put the most pressure on stocks seen as the most expensive, and that puts the spotlight on the Big Tech stocks that have led the market for most of the last few years.

On Tuesday, all of the Big Tech stocks that have collectively come to be called the "Magnificent Seven" rose. Nvidia led the way with a gain of 4% and was the strongest single force pushing upward on the S&P 500.

PepsiCo climbed 1.9% after delivering stronger profit for the latest quarter than analysts expected, though its revenue fell short.

CEO Ramon Laguarta also said the company now expects a "low single-digit" increase in an important measure of revenue for the year after it had earlier forecast growth of about 4%. U.S. consumers continue to pull back on buying snacks and drinks after years of price increases.

On the losing end of Wall Street were oil-and-gas companies, which gave back some of their big recent gains driven by the last week's jump in crude prices. Chevron fell 1.6% and was one of the main reasons the Dow lagged other indexes.

TikTok, though, is facing an even bigger obstacle, as its very existence in the U.S. is in question. Under a federal law that took effect earlier this year, TikTok could be banned from the U.S. by mid-January if its China-based parent company, ByteDance, doesn't sell the platform by then. Both TikTok and ByteDance are challenging the law at an appeals court in Washington. A panel of three judges heard oral arguments in the case last month and are expected to issue a ruling, which could be appealed to the U.S. Supreme Court. In its filings Tuesday, the District of Columbia called the algorithm "dopamineinducing," and said it was created to be intentionally addictive so the company could trap many young users into excessive use and

keep them on its app for hours on end. TikTok does this despite knowing that these behaviors will lead to profound psychological and physiological harms, such as anxiety, depression, body dysmorphia and other long-lasting problems, the district said. TikTok is disappointed that the lawsuits were filed after the company had been working with the attorneys general for two years on addressing to the issues, a spokesman said. "We strongly disagree with these claims, many of which we believe to be inaccurate and misleading," the TikTok spokesman. Alex Haurek, said. "We're proud of and remain deeply committed to the work we've done to protect teens and we will continue to update and improve our product."

THE NEW York Stock Exchange, rear, is shown on Tuesday, Oct. 8, 2024, in New York.

Photo:Peter Morgan/AP

Musk’s X to be reinstated in Brazil after complying with Supreme Court demands

By GABRIELA SÁ PESSOA and BARBARA ORTUTAY Associated Press

THE Brazilian Supreme Court's Justice Alexandre de Moraes on Tuesday authorized the restoration of social media platform X´s service in Brazil, over a month after its nationwide shutdown, according to a court document that was made public.

Elon Musk's X was blocked on Aug. 30 in the highly online country of 213 million people — and one of X's biggest markets, with estimates of its user base ranging from 20 to 40 million. De Moraes ordered the shutdown after a monthslong dispute with Musk over free speech, far-right accounts and misinformation. Musk had disparaged de Moraes, calling him an authoritarian and a censor, even though his rulings, including X's suspension, were repeatedly upheld by his peers.

Despite Musk's public bravado, X ultimately complied with all of de Moraes' demands. They included blocking certain accounts

from the platform, paying outstanding fines and naming a legal representative in the country. Failure to do the latter had triggered the suspension.

"The resumption of (X)'s activities on national territory was conditioned, solely, on full compliance with Brazilian laws and absolute observance of the Judiciary's decisions, out of respect for national sovereignty," de Moraes said in the court document.

"X is proud to return to Brazil," the company said in a statement posted on its Global Government Affairs account. "Giving tens of millions of Brazilians access to our indispensable platform was paramount throughout this entire process. We will continue to defend freedom of speech, within the boundaries of the law, everywhere we operate."

Just two days before the ban, on Aug. 28, X said it was removing all its remaining staff in Brazil "effective immediately," saying de Moraes had threatened with arrest its legal representative in the country, Rachel de Oliveira Villa

Nova Conceição, if X did not comply with orders to block accounts.

Brazilian law requires foreign companies to have a local legal representative to receive notifications of court decisions and swiftly take any requisite action — particularly, in X's case, the takedown of accounts. Conceição was first named X's legal representative in April and resigned four months later. The company named her to the same job on Sept. 20, according to the public

filing with the Sao Paulo commercial registry.

In an apparent effort to shield Conceição from potential violations by X — and risking arrest — a clause has been written into Conceição's new representation agreement that she must follow Brazilian law and court decisions, and that any legal responsibility she assumes on X's behalf requires prior instruction from the company in

writing, according to the company's filing.

Conceição works for BR4Business, a business services firm. Its two-page website provides no insight into its operations or staff.

"Something great is on its way," the top of the site's main page reads in English. Its other page is an extensive privacy policy.

At three of its listed Sao Paulo offices, receptionists told the AP that the company's offices are empty and employees work remotely.

Neither Conceição nor BR4Business returned multiple phone calls and emails from the AP.

There is nothing illegal or suspect about using a company like BR4Business for legal representation, but it shows that X is doing the bare minimum to operate in the country, said Fabio de Sa e Silva, a lawyer and associate professor of International and Brazilian Studies at the University of Oklahoma.

"It doesn't demonstrate an intention to truly engage with the country. Take Meta, for example, and Google. They have an office, a government

relations department, precisely to interact with public authorities and discuss Brazil's regulatory policies concerning their businesses," Silva added.

Indeed, it is rare for an established, influential company such as X to have only a legal representative, said Carlos Affonso Souza, a lawyer and director of the Institute for Technology and Society, a Rio-based think tank. And that could be problematic going forward.

"The concern now is what comes next and how X, once back in operation, will manage to meet the demands of the market and local authorities without creating new tensions," he said.

Some of Brazilian X's users have migrated to other platforms, such as Meta's Threads and, primarily, Bluesky. It's unclear how many of them will return to X. In a statement to the AP, Bluesky reported that it now has 10.6 million users and continues to see strong growth in Brazil. Bluesky has appointed a legal representative in the South American country.