WILLEMSTAD - This week, the Common Court of Justice appointed an expert to determine the value of the Mullet Bay property on Sint Maarten. Greg Becker from Colliers International in the United States has been tasked with investigating the "fair value" of the property on four specific dates: December 31, 2009, 2012, 2015, and 2018. The investigation will be conducted according to the International Financial Reporting Standards (IFRS 13).
The value of Mullet Bay is crucial in the case between Ennia and its former shareholder Ansary and others, as it determines whether dividend payouts and other payments from Ennia to its shareholder Ansary were in compliance with legal and statutory regulations.
The court previously ruled that the value of Mullet Bay was overestimated in Ennia's financial statements, based on insufficiently substantiated appraisals. An accurate valuation is needed to determine whether excessive amounts were paid out and if these amounts need to be refunded to Ennia.
Research Assignment
The court has determined that Greg Becker will work independently and ensure transparency, as well as a fair hearing process. The advance for his research is estimated at $73,500. This amount must be paid by three involved parties – Hushang Ansary, Ralph Palm, and Abdallah Andraous – with each responsible for one-third of the payment before December 10. The research can only begin once the full amount has been received. If the advance is insufficient, the research will be suspended until additional payments are made.
The expert will have access to various appraisal reports and legal documents. These documents, including previous appraisals and relevant legal notes, will be provided in English by the involved parties. The expert will conduct additional research, including determining the extent of the property using cadastral data and a physical inspection on site. Parties may be present during the inspection to make remarks, which will be included in the report.
The court emphasized that the parties are legally required to cooperate. This includes timely payment of the advance and providing documents and information to the expert. Failure to comply with these obligations could result in the suspension of the investigation and adverse consequences for the non-compliant party.
The expert’s report is expected within four months after the advance payment. Prior to the final version, the parties will have four weeks to respond to a draft report. The court has tentatively scheduled the case for April 15, 2025, pending the final report.
IFRS 13
IFRS 13, or the International Financial Reporting Standard 13, is a global guideline that helps determine the fair value of an asset or liability, in this case, Mullet Bay on Sint Maarten. The standard is designed to ensure that businesses and experts worldwide assess value consistently and transparently.
The fair value is the price that would be received when selling an asset, or paid to assume a liability, in an ordinary market situation.
IFRS 13 provides three approaches to calculating fair value. The expert must consider comparable sales, examining what similar assets cost in the same market. He will also consider future earnings, estimating the potential future income of the asset, and adjusting it to its present value. Additionally, the expert will assess the replacement cost, which is what it would cost to build or acquire a similar asset.
