Freeport stem cell therapy provider Okyanos in wind-up petition battle – EyeWitness News

NASSAU, BAHAMAS The fate of Freeports pioneering stem cell therapy provider has now become the subject of legal dispute, with its principal creditor seeking the winding-up of the company.

According to court documents seen by Eyewitness News, Okyanos claims that damagessuffered toits nearly 15,000 sq feet rented Freeport facilities as a result of Hurricane Dorian in September 2019 left thepremisesunfit for use. As a consequence, all of thecompanysbusiness ceased. That claim however has beenfiercely disputed by its landlord First Commercial Ltd who is seeking to have its dispute arbitrated and block the removal of the companys equipment which could satisfy an award in those proceedings.

Okyanos is the first licensed stem cell therapy provider in The Bahamas. It has been treating patients with chronic diseases by using their own stem cells from fat tissue. It opened to patients in October 2014, providing treatment for those with autoimmune, orthopaedic, cardiovascular and neurological conditions.

According to details outlined in a wind-up petition by its primary creditor LS Enterprise Ltd, -a companyregisteredin the British Virgin Islands, Okyanos between August 2, 2017 and May 6 2019 entered into four loanfacilityagreementsfor working capital and generalcorporate amounting to some $15.9 million. Okyanos had ultimately sought additional loans from LS Enterprise Ltd following Hurricane Dorian however was informed that it was in default of its facility agreements having ceased to carry on its business and that all loans were immediately due and payable.

According to the wind-up petition an ex parte order obtained by Okyanoss landlord First Commercial Ltd had restrained the stem cell therapy provider fromremediatingthepremisesor removing its equipment. It is claimed that substantial amounts of water and wind had penetrated the companyspremises causing major property loss and damage.Further, a lack of consistent electricity and airconditioninghad caused mold contamination.

Thecompanyattemptedtomitigateloss and damage by movingequipmentto aclimatecontrolledstorage and and preparing thecompanysoperatingfacilitiesfor moldremediation butthat was hampered by the landlord whose servants oragentsinstructed thecompanys personnel to cease anddeistfrom such activities, LS Enterprise outlined in its petition.

It further noted that in a notice to the landlord dated October 25, 2019, Okyanos had exercised its right to terminate its leaseagreementwithin 60 daysfollowingthe storm due to the facilities being unfit for use or occupancy the hurricane. On October 30, First Commercial Ltd obtained an ex parte order restraining the company from anyfurtherremediation efforts as well as the removal or disposal of equipment, LS Enterprise has claimed. The company had filed for damages with its insurance provider but had not received the majority of any such insurance proceeds the petition station.

Accordingly it is claimed that the company has insufficient funds to secure a new lease forfacilitiesto treatpatients,arbitratewith landlord torecover itsequipment and supplies, or conduct amarketingcampaignto attract patients to The Bahamas.

However, an affidavit but attorney Andre Jay Feldman, president and a member of the Board of Directors of First Commercial Centre seeking to restrain Okyanos from breaching its lease disputed the companys damages claim.

According to Mr Feldmans affidavit, a copy of which was seen by Eyewitness News, he inspected thepremiseson September 4 and beyond some minimal damage due to a single window having opened in one of theclinicalrooms, there was no damagewhatsoeverthroughoutthe clinic and nosignificantdamage referred to by the company. Mr Feldman claimed that Steve Araiza, a Houston based attorney for Okyanos had written him on September 26, 2019 seeking a rent abatement and to end theleaseon thegrounds of hurricane damage.

According to Mr Feldman, flood water had entered parts of theground flooroccupiedby CIBC and on September 15, 2019, the bank had not onlyremediatedany damage but hadreopenedfor business. He further contended that on September 4, Okyanos had allowed the Rand Memorial Hospital to use itsfacilities for urgent patient care. Mr Feldman contends that there was no damage to make the facilities unfit for use. According to Mr Feldman, since September 1 there had been no payment towards rent or electricity with respect to air-conditioning consumption. He asserted that if Okyanos is allowed to remove its assets they would be shipped out of country and would not be available to satisfy any award from arbitration. The landlord is claiming it is owed $1,768,000 and that while it plans to claim on a $890,000 loss of rentinsurancethere is no guarantee that can be recovered.

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Freeport stem cell therapy provider Okyanos in wind-up petition battle - EyeWitness News