Monday, July 27, 2015

Bahamian court deals blow to Baha Mar mega resort's U.S. bankruptcy

Per Reuters:

A judge in the Bahamas has declined to recognize the U.S. bankruptcy filing by Baha Mar Ltd, the developer of a $3.5 billion mega resort, a source familiar with the ruling said on Wednesday.

Recognition of the Chapter 11 U.S. bankruptcy filing would have prevented creditors from taking action against Baha Mar Ltd in the Bahamas. The decision by Supreme Court Justice Ian Winder was the latest snag in the nearly completed project, which is considered vital for the Caribbean country's fragile economy.

Baha Mar said in a statement it was disappointed by the ruling. "We do not believe today's ruling, for which the government strenuously argued, assures the necessary protection of the assets of Baha Mar, and we do not believe that it is best for the over 2,500 current employees of Baha Mar."

Work has been halted as the local developer, Sarkis Izmirlian, and contractor China Construction America (CCA), a unit of China State Construction Engineering Corp Ltd , have traded blame for missing two completion deadlines.

CCA has asked the U.S. Bankruptcy Court in Wilmington, Delaware to dismiss the Chapter 11.

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