The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Cabinet Minister yesterday confirmed that the parties to the $3.5 billion Baha Mar dispute “appear to be negotiating in good faith”.

Damian Gomez, minister of state for legal affairs, gave a rudimentary update on the status of the Beijing talks between Baha Mar, its Chinese financing and construction partners, and the Government.

He made the comments following a closed status hearing before Supreme Court Justice Ian Winder.

 “Discussions are in train and are continuing,” Mr Gomez said: “At the time of the time of the status hearing the parties appeared to be in good faith negotiations. I haven’t been able to hear what’s happened since then. That’s where we are.”

Major stakeholders in the Cable Beach resort development have been granted 13 days by Justice Winder to negotiate a resolution that would get the stalled project over the finish line.

Attorney General, Allyson Maynard-Gibson, has led a government delegation to China where executives from Baha Mar, China Construction America and the China Export-Import Bank are in discussions to reach a settlement.

The Government delegation is expected back in the Bahamas on Thursday, according to Mr Gomez.

   Prime Minister Perry Christie, while appearing as a guest Monday during the launch of KISS FM radio show, Ed Fields Live, said the first day of Baha Mar meetings in China were “good”, but warned that a “very, very serious situation” would result if the relevant parties could not secure an agreement yesterday.

   A full hearing on Baha Mar’s application for the Supreme Court to recognise the resort’s ongoing Chapter 11 bankruptcy proceedings in the US, and give them legal effect in theBahamas, is scheduled to be heard by Justice Winder next Tuesday.

Baha Mar had sought  an adjournment to allow Baha Mar to enter into negotiations with the China Export-Import Bank and the Hovernment.

    Baha Mar and its affiliated companies filed for bankruptcy protection in a Delaware court on June 29, blaming the contractor, China Construction America, for the construction delays that caused it to miss previous opening deadlines.

The resort also took legal action against China Construction America’s parent company, China State Construction Engineering Company, in England’s High Court claiming $192 million worth of damages.

A US judge approved Baha Mar’s request to begin tapping into $80 million in financing arranged by its principal to cover operating expenses while it remains in Chapter 11 bankruptcy proceedings.

However, the Delaware judge’s approval of the debtor-in-possession (DIP) financing request, to include $30 million to be used by the resort over the first 30 days, was conditional on the approval of the Bahamas’ Supreme Court.