Loan provided to Blue Islands in 2020

​Request 733734068​

Dear FOI Officer,

Under the Freedom of Information (Jersey) Law 2011, I hereby request the following information regarding the £8.5 million loan provided to Blue Islands in July 2020:

Loan Security

a. Are there any securities or collateral attached to the loan (e.g., aircraft, property, equipment, receivables)?

b. If yes, please provide:

A description of each asset secured.

The legal mechanism used to secure the loan (e.g., charge, lien, mortgage, PPSA-equivalent).

Repayment Oversight and Enforcement Provisions

a. What measures or covenants are in place to monitor quarterly repayments and ensure loan repayment?

b. What steps can the Government take (or has reserved the right to take) if repayments are missed or fall below agreed amounts?

Acceptable Repayment Structure

a. Given that Blue Islands has repaid approximately 17% of the capital by 31 May 2025, notably missing the past two quarterly payments (per Bailiwick Express), does this constitute a breach of the repayment schedule?

b. If not a breach, please explain how this repayment progress complies with the terms of the loan agreement.

c. What remedial actions are available to (or have been initiated by) the Government if repayments lag relative to the originally agreed timetable?

Response

The requested information is exempt from disclosure under Article 33 of the Freedom of Information (Jersey) Law 2011.

Article applied 

Article 33 - Commercial interests

Information is qualified exempt information if –

(a) it constitutes a trade secret; or

(b) its disclosure would, or would be likely to, prejudice the commercial interests of a person (including the scheduled public authority holding the information).

Public Interest Test

Article 33 is a qualified exemption and as such, Treasury and Exchequer (T&E) has conducted a prejudice test as required by law. 

When responding to requests of this nature, T&E has to balance the public interest with the impact that disclosing this information would, or would be likely to, have upon the organisation and / or third parties. 

Whilst it may be in the public interest in the information requested, protecting the commercial interests of T&E is an essential component in controlling public finances, which in itself is in the public interest.

It has been concluded that disclosing details of the loan arrangements and repayment structures is likely to prejudice the commercial interests of T&E and / or Blue Islands. 

When considering the application of this exemption, T&E has determined that whilst it is in the public interest to disclose information, this is outweighed by the necessity to limit any impact on the commercial interests of T&E and Blue Islands in future contract negotiations, and as such, Article 33 has been applied.