NiQuan’s arbitration funding questioned in winding up hearing

DEEP in debt, energy firm NiQuan Energy Trinidad Ltd, currently under receivership and facing substantial debts to state entities and private creditors, is being questioned over claims that it has hidden financial support.

Anand Ramlogan, SC, raised the concern at the winding-up proceedings before Justice Westmin James. Ramlogan represents Niquan’s former vice president, David Small, who sought the company’s liquidation in 2024 to enforce over $20.5 million in damages and interest for breach of contract, relating to unpaid sums and a mutual separation agreement with the company upon his departure in November 2021.

Ramlogan complained that based on a June 9 report by the receiver, appointed in October 2024, it appeared that NiQuan was receiving financial support to the detriment of its creditors, including his client. He said the report showed NiQuan was fully funded for its legal arbitration costs by an unnamed litigation funder, with $2 million already posted for security. Niquan’s arbitration proceedings concern its terminated contract with the government. In August 2023, its contract with the Trinidad and Tobago Upstream Downstream Energy Operations Company Limited (TTUDEOCL) was terminated, leaving TTUDEOCL owed over US$22 million.

At the winding-up hearing, Ramlogan complained that the receiver’s report did not mention Small’s judgment. He complained that NiQuan’s ability to retain legal representation and pursue a multimillion-dollar arbitration against the government suggested that it was being covertly funded, and he called for full and frank disclosure of NiQuan’s financial position.

He contended that it was manifestly unfair for Small to remain unpaid while the company was being secretly sustained. Ramlogan said litigation financing was based on a contingency arrangement where a financier can take a pre-determined percentage of the arbitration award and “was not an act of charity.”

Ramlogan reminded that Small initiated the winding-up action and mentioned the death of Massy Energy pipefitter Allanlane Ramkissoon, who died in an explosion at NiQuan’s GTL plant in 2023. Ramlogan also represents Ramkissoon’s widow as she seeks a confidential report from the Ministry of Energy into her husband’s death.

Newsday understands June 11 was the court-ordered deadline for the ministry to release the report, but the ministry has asked for additional time. NiQuan’s insurance policy had lapsed in April 2024, but third-party liability (TPL) coverage remained active and will not impact coverage under its TPL policy regarding the OSHA claim in Ramkissoon’s death. The winding-up hearing was adjourned to December. AS NiQuan’s court-appointed liquidator oversees the sale of the ambitious -liquids Pointe-a-Pierre GTL plant, it will be executed on an “As Is, Where Is” basis, with expressions of interest due June 16, and formal proposals by June 30. A preferred bidder is expected to be named by July 15. NiQuan also owes substantial debts to several state entities, including T&TEC, WASA, Trinidad Petroleum Holdings Ltd (TPHL), and eTeck.

ETeck’s board has rejected a proposal and issued a notice to quit, requiring NiQuan to vacate by June 6. Partial payments have been made to resolve the arrears and avoid asset distress. There is also an outstanding balance of over $5.7 million to T&TEC. The plant’s power was disconnected in May 2024, and T&TEC wants a 20 per cent upfront payment of $1,142,196.33 to restore service. Because of financial constraints, the use of a 1MW diesel generator had been considered as a temporary measure, but it would incur high fuel costs. TPHL has also requested a management framework for the plant, and monthly stakeholder meetings have been agreed on. TPHL is also expected to submit documentation to the receiver on NiQuan’s outstanding debt.

Jared Jagroo, Ganesh Saroop also appear for David Small. Vivek Lakhan Joseph appears for NiQuan, while Jonathan Walker appears for Republic Bank. Stephen Singh represents the receiver; Prem Persad Maharaj appeared for a creditor, and Lydia Mendonca represented WASA.