RECO Ready for Change
Company’s Board of Directors accepts a purchase bid from a US billionaire retired part time on Barbaret

July 1st, 2007
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[private]

RECO installations and two of the recently leased generators.

RECO installations and two of the recently leased generators.

After 15 years of struggle to become profitable and find good management RECO might finally be seeing light at the end of the tunnel. On June 11, after five months of emergency management by ENEE and several low-ball offers from the mainland power company owners, an American billionaire building a holiday home on Barbaret won the bid for the option to buy the controlling stake in Roatan Electric Company.

“We had three serious bids, including: one from Cayman Islands and one from mainland Honduras,” said Felipe Danzilo, RECO’s lawyer. According to Bay Islands Voice sources, some of the Honduran offers were ‘lowball’ offers at a fraction of RECO’s value. “[Kelcy] Warren’s offer was by far the most comprehensive,” said Danzilo.

Kelcy Warren, 50, has several decades experience of working in gas energy in Texas and is a Co-Chairman of Energy Transfer Partners Company, earning a reported $1.15 million a year. “He will infuse the company with new equipment, offer a reduced rate for the poor and pursue alternate power generation methods,” explained Danzilo about Warren’s proposal for RECO. “It behooves everybody that he will realize the purchase.” RECO operating capital is estimated at Lps. 10 million and Warren has the option to purchase controlling share of RECO stock- 52%.

The deal is not yet final as RECO stockholders have 15 days to exercise their right of first refusal. Also, a June 20 incident involving Warren’s security guards on Barbaret and death of three men from Saint Helene has spilled over into anger at the American amongst the Roatan’s ladino community.

The situation is complicated further by a confrontational attitude of the patronato leadership which has paralyzed RECO in the past. “The RECO board squandered their shares of the company and now we the people own 60% of the company,” said Pablo Nelson, president of Roatan Independent Tour Companies. According to Nelson, at a recent patronato meeting in Sandy Bay Rosa Hendrix, president of the Bay Islands patronatos, discussed taking over RECO installations and bringing in engineers and staff to run the company. “We are not giving these shares to the ‘gringo’ [Warren] and we are getting ready to take over RECO,” said Nelson. [/private]

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