Baha Mar Ltd. moved forward with its Chapter 11 process Wednesday, receiving court approval for, among other key initiatives, the continued payment of salaries and benefits, payment of ordinary course suppliers and vendors for any post-petition claims, and the operation of certain customer loyalty and other programs.
To enable Baha Mar to undertake these initiatives, the court approved the interim Debtor in Possession (DIP) financing arranged by Sarkis Izmirlian, Baha Mar’s developer. Specifically, the total DIP facility is up to $80 million of which up to $30 million will be utilized by Baha Mar over the next 30 days.
“Our goal is to complete construction and successfully open Baha Mar as a world-class destination resort that will attract guests from across the globe and serve as a key economic sparkplug in The Bahamas," said Izmirlian in a written release. "The Chapter 11 process provides us the best path to position us to achieve this goal.”
Milbank, Tweed, Hadley & McCloy, LLP and Kobre & Kim, LLP are acting as legal advisors, and Moelis & Company is acting as financial advisor to the filing entities.