Cavalier Collapse Took Down Affiliate

Cavalier Construction’s insolvency took down its equipment supplier affiliate even though the latter had generated a net profit in each of the previous four years, its liquidators have revealed, the Nassau Tribune reported. Andrew Davies and Kendrick Christie, the Crowe Bahamas accountants and partners, in their first report to the Supreme Court on Bobcat Bahamas’ winding-up disclosed that it was placed into liquidation only because it lost the services and back office support provided by Cavalier when the latter collapsed in January 2020. “The company’s financial books and records show the company had made a net profit the last four financial years ended December 31, 2019,” the Crowe Bahamas duo said of Bobcat Bahamas. “However, the directors made the decision to wind the company up on the basis the company was heavily reliant on Cavalier Construction Company Limited for its back office and operational support, and Cavalier had ceased trading on January 15, 2020, when it terminated all employees.” They added: “Cavalier was also a significant revenue generator for Bobcat Bahamas, using their machines on any construction projects it was involved in which would no longer be the case going forward." Read more.