In the roughly one week since Baha Mar Ltd. filed for voluntary bankruptcy, a lot has happened, as both the developer of the resort and Chinese construction company working on the project began blaming each other for the delays while Bahamians took to the streets of Nassau to support the resort. Travel Agent keeps you up to speed on the latest Baha Mar news.
Baha Mar Ltd. Expresses Concern Over Bahamian Supreme Court Proceedings Adjournment
Last week Baha Mar Ltd. stated that it is extremely concerned and disappointed that the Supreme Court of the Commonwealth of The Bahamas decided to adjourn until Tuesday, July 7, the hearing of Baha Mar’s application for recognition of the U.S. bankruptcy proceedings.
The adjournment by the Bahamian Supreme Court was granted at the joint request of the office of The Attorney General of The Bahamas and The Export-Import Bank of China, the project’s lender.
“This adjournment unfortunately makes it impossible at this time to act on the U.S. Court approvals we received yesterday, which would allow us, among other things, to pay salaries and benefits for Baha Mar Citizens as well as pay ordinary course suppliers and vendors for goods and services post the commencement of the Chapter 11 process," according to a written statement by Baha Mar Ltd. "The adjournment has very troubling implications for both the Chapter 11 process and our efforts to position Baha Mar to complete construction and open successfully.”
Baha Mar reported that the Bahamian Supreme Court directed Baha Mar, at the request of the Attorney General, to provide the Government with information necessary for the Government to pay the salaries of the more than 2,200 Baha Mar employees for the period ending July 3.
“We are doing everything we can to immediately comply with the Supreme Court’s direction," Baha Mar Ltd's statement read. "It is in Baha Mar employee’s interests that the government now fulfills the responsibility it has chosen to take on for this pay period.”
Baha Mar is complying with this direction, although the company noted that the Government’s unorthodox request for the direction appeared redundant in light of the U.S. Court on July 1 granting Baha Mar its Debtor-In-Possession (DIP) financing and approving Baha Mar’s motion to operate and fund its payroll in the normal course.
“The government’s objection is quite alarming. As we have made clear all week, time is of the essence for Baha Mar," the statement read. "Having Baha Mar succeed is extremely important to the long-term economic well-being of the country.
Hundreds of Bahamians Rally in the Streets in Support of Baha Mar Developer
Following that announcement, on July 3 hundreds of Baha Mar employees took to the streets in The Bahamas to proclaim their support for Sarkis Izmirlian, the developer of the $3.5 billion project, according to a report by Tribune242.
Faithful Baha Mar employees take to the streets in support of the controversial billion dollar project and it's developer.....more to comePosted by ZNS News.com (The Official Page) on Friday, July 3, 2015
Sporting the brand's logo and colors, workers marched from Goodmans Bay to the mega-resort's parking lot chanting their affection for Izmirlian. Some workers chanted, "We love you, Sarkis," as they walked along West Bay Street.
The rally follows reports that the government has stepped in to pay salaries for this month, citing concerns that workers were being used as “pawns” in the resort’s Chapter 11 bankruptcy claim.
Attorney General Allyson Maynard Gibson confirmed on Thursday, July 2, that the government would pay the salaries of more than 2,000 Baha Mar workers this month as negotiations over the fate of the stalled $3.5 billion project continue.
Report: Chinese Firm Points Blame at Developer Over Baha Mar Delays
Following the rally, this past Tuesday, July 6, is reporting that the Chinese construction company that is the general contractor for the $3.5 billion Bahamian resort development, Baha Mar, released a statement saying that the project's numerous delays were a result of mismanagement by the developer, the Miami Herald reports.
Some examples of mismanagement, the company claimed, included 1,300 construction change orders and replacing the principal architect after construction had already begun.
According to the Miami Herald report, in filing for Chapter 11 bankruptcy protection in Delaware last week, Baha Mar Ltd. — the developer of the resort being built along Nassau’s Cable Beach — said that repeated delays by the contractor, CCA Bahamas, and resulting loss of revenue because of missed deadlines for opening the resort had led to its bankruptcy decision.
“Baha Mar Ltd.’s decision to file for bankruptcy protection is the direct result of its failure to secure adequate financing and its mismanagement of the design of Baha Mar resort project,” said CCA Bahamas in its first statement on the bankruptcy. According to the Miami Herald, in addition to the change orders and the new architect, CCA Bahamas said the developer was responsible for “late and incomplete delivery of design packages.”