Cayman Enterprise City is suing two of its tenants, Byzantium International Ltd. and Bardi Ltd., for allegedly not paying some US$178,000 in rent.
According to CEC’s claim, the special economic zone entered into an agreement with Byzantium and Bardi on March 8, 2015 for the companies to lease CEC’s Flagship Building in central George Town for US$9,378 per month.
Later that year, Byzantium and Bardi – the former firm is a precious metals brokerage and the latter is a biotechnology consulting company – asked to move into a smaller space in order to save money, states the claim form posted on the financial services website OffshoreAlert.
Although the licensing agreement did not permit such a move, CEC told the companies that it would allow them to lease a smaller space at a reduced fee “as a gesture of goodwill,” according to the claim form.
CEC stated that in January 2016 it notified Byzantium Managing Director John Buck that it found another client to move into the Flagship space and offered the companies a smaller space at US$4,104 per month.
“As far as our space, it is UN [sic] important where it is, as we will only be using when on island,” Mr. Buck responded, according to the claim form, “so put us in the closet if you need to.”
Despite receiving the lower licensing fees, the two companies are still in arrears for more than US$178,000, states CEC, a special economic zone sanctioned by government to provide investment incentives to businesses that open offices there.
Along with that amount, CEC is seeking interest and costs from Byzantium and Bardi.