Baha Mar Ltd. issued the following statement this afternoon with regard to the Prime Minister’s decision announced last night:
“The Bahamian Government’s decision to seek a winding up of Baha Mar is both unnecessary and reactionary, puts Baha Mar’s staff and assets at severe risk, and significantly jeopardizes the future of the resort.
Baha Mar senior officials have been and continue to be in China engaged in ongoing discussions with both the general contractor and the lender. Yet, notwithstanding those good faith discussions, the Government announced in the middle of the night it will seek to liquidate Baha Mar, creating a distraction from these ongoing discussions.
Here are the plain hard facts:
Baha Mar adjourned a hearing on its application for recognition of the U.S. Bankruptcy Court’s orders until this coming Monday July 20th, such that the parties can negotiate a global resolution that would permit completion of the project. The matter was not adjourned for the Government to pursue legal remedies.
Discussions seeking a consensual resolution between Baha Mar, China State Construction and The Export-Import Bank of China continued to take place in Beijing today — even as the Prime Minister implemented this unnecessary action.
Baha Mar believes that these parties have developed an understanding of what is needed to finish the project and are willing to provide the required financing. As the Prime Minister had correctly stated to us, once the parties have agreed on such a pathway for consensual resolution, the rest is just details.
The discussions were not ended; the Government left the ongoing discussions to follow its own path rather than to continue to act in a mediator capacity between the private parties as it had announced it would do.
The Government fails to explain how availing itself of the Winding Up Act of Bahamian law provides more or better relief that the Chapter 11 process. The statute does not have the robust protections afforded to all creditors under Chapter 11. In effect the Government of The Bahamas legal maneuvers are an attempted nationalization of a private investor's assets.
Further, Bahamas law itself provides for recognition of proceedings such as Chapter 11 to give legal effect on Bahamas soil. Such mutual recognition of cross border insolvencies is a common international legal standard existing among many countries.
- Many of the statements of the Prime Minister are just plain misleading: a) There was no agreement in June as the Prime Minister said. There was a not finalized understanding discussed by Baha Mar and The Export-Import Bank of China to which China State Construction and CCA had not agreed. Indeed, there was no construction timeline or cost to complete from the general contractor or terms received from the lender.
b) Baha Mar has not refused to dismiss the Chapter 11. We have agreed to dismiss the case as soon as parties have a mutually-beneficial binding agreement to the benefit of all parties, an interest the Government should share, rather than taking actions that risk irreparably damaging the discussions.
c) Even so, the Chapter 11 is not an attack on the sovereignty of the country in any manner. The application for the recognizing orders was not intended to enjoin any action by the Government.
d) The project was on budget, even with a four month delay, had it opened on March 27th, the date that China State Construction repeatedly promised the developer and the Prime Minister, including during his visit to Beijing in January. The project continued to survive past that date, and employees were paid, in no small part due to contributions of more than $18 million by the Izmirlian family. The Izmirlian family has invested over $900 million in the project, has repeatedly announced its willingness to invest millions more, as recently as offering $80 million to Baha Mar last week.
We urge the Government of The Bahamas not to seize private party assets and to allow the private parties in what is after all a commercial enterprise to come to an agreement that would allow for the completion and opening of Baha Mar as soon as possible, as the Government has publically and explicitly urged.
For our part, Baha Mar is evaluating its alternatives with respect to addressing the Government's precipitous action and will continue to move forward with its ongoing appropriate efforts to position the resort to be properly completed and opened successfully as soon as possible.”
Comments
GrassRoot 8 years, 9 months ago
I think they should sue our Government. just for he fun of it.
Reality_Check 8 years, 9 months ago
Suing our government may now be a legal necessity for Baha Mar as a result of Christie and Maynard-Gibson's petulance and vindictiveness. These two evil, greedy demons and their cohorts are hell-bent on destroying our country if we (the Bahamian people) are foolish enough to sit back and allow them to do so.
asiseeit 8 years, 9 months ago
So the truth is our P.M. has been lying to us straight through, no surprise there. The world is watching and we will not recover from this for a very long time. This Government just took this country back 30 years. I hope the PLP still has the contacts for the drug runners, we gonna need them soon.
Hogfish 8 years, 9 months ago
Kaboom!
We are officially the Zimbabwe of the Caribbean.
Well_mudda_take_sic 8 years, 9 months ago
AS I SAID YESTERDAY: Christie, Maynard-Gibson aka Wicked Witch and Gomez aka Minion will now seek to rob the Izmirlian family of their entire interest in the Baha Mar property physically located in the Bahamas by any means possible, which, when all is said and done, will be tantamount to a de facto confiscation by expropriation of the Izmirlian family's equity interest in the property for the benefit of Christie's new found Chinese friends. You can be rest assured every Bahamian government department, agency and corporation will be instructed not to assist the Izmirlian family or Baha Mar's representatives in any way whatsoever without the express approval of Christie or his Wicked Witch on his behalf. As for any legal actions to be heard in the Bahamian courts....well, we all know the influence that can be wielded at will over our courts by the Wicked Witch doing Christie's bidding. Of course it will take many years for the value of the Izmirlian family's equity interest in the venture to be determined by the eventual outcome of the legal actions properly brought by Baha Mar, as a last resort, before foreign courts in Delaware and the U.K. The only honourable thing Christie could possibly do now is dissolve parliament, but he is too delusional, self-infatuated and irrational to do anything honourable!
Well_mudda_take_sic 8 years, 9 months ago
AS "REALITY_CHECK" SAID YESTERDAY: If delusional Christie, hissy tissy Maynard-Gibson and minion Gomez are fool enough to do as you say here, then the Bahamian people can be rest assured that no other significant foreign investors (other than the Chinese government) will ever invest in our economy. Foreign investors already here (except the Chinese) would also accelerate the selling-off of their hard property assets in order to make a clean exit from our shores as quickly as possible. Also, the Izmirlian family, through Baha Mar, would likely be justified in asserting very substantial legal claims (in foreign courts) against the Bahamian government for the added losses that would be incurred as a result of the vindictive conduct of Christie, Maynard-Gibson and Gomez. Any claims the foreign courts might award Baha Mar (the Irzmirlian family) against the Bahamian government would amount to mega-millions of dollars and would have to somehow be paid out of the hides of honest, hardworking and already over-taxed Bahamians.
Incognegro 8 years, 9 months ago
The sad part about this whole ordeal is how we as a nation is looking to the international tourist world and to FDIs. Despite the antics of the Izmirlians, If I invested almost a billion dollors of personal funds, I would be screaming mad too!!
New4068 8 years, 9 months ago
PLP wanted to leave a legacy....well congrats. You just did. A legacy of third world pocket lining and self greed. Let's build Christie a bust and put it on display for the "Great Leader".
TalRussell 8 years, 9 months ago
Comrades any observer of the US Corporate Chapter 11 law, understands it can best be described as being “debtor-friendly”and not "creditor friendly." The chances of local contractors/suppliers ever getting paid are slim to none, and slim done run his ass away from Nassau Town, for Delaware.
Neither this PLP cabinet, nor for that matter the previous red regime's cabinet, have in the past demonstrated they are willing to pay anyone they wish not to pay, or can wiggle out paying. But I do wish our local contractors and suppliers good luck!
banker 8 years, 9 months ago
Pardon me ma'am, your ignorance is showing. The local creditors were contracted and being paid by the Chinese CCA. They have nothing to do with Delaware. They must join Izmirlian and sue CCA to get their monies. The Chinese are the ones not paying the bills, while overcharging Baha Mar. The contractor for services were not hired by the Delaware company.
TalRussell 8 years, 9 months ago
Comrade "Supreme Court of Banker" there you go, again - no further need any foreign, or US court, to deal Baha Mar's matters. She done.
banker 8 years, 9 months ago
Supreme Court of Common Sense. Member since birth. I didn't see your name on the membership rolls.
TalRussell 8 years, 9 months ago
Oh my dear Comrade Banker, try cut from chasing the red bus propaganda at least long enough to use some that 'claimed' common sense, to try explaining to our local contractors, suppliers and business people, how in hell can they ever expect get paid, and try sticking to repayment - during this there lifetime's?
Reality_Check 8 years, 9 months ago
Tal, how much is Mitchell at BahamasUncircumcised.com paying you for all of this disinformation time you put in on The Tribune website?
TalRussell 8 years, 9 months ago
Comrade Reality Check here's some much need colour blind therapy for you brought to you by Comrade Tal.
Colour blind Reality Check sees another colour other than "Papa Red" for the first time.
.......//https://www.youtube.com/watch?v=4LQhn...">https://www.youtube.com/watch?v=4LQhn...
saysomething 8 years, 9 months ago
CLICO.....PRIMARY EXAMPLE
sheeprunner12 8 years, 9 months ago
The saga continues ......................... Izzie has the land and physical plant, the Chinese has the loan and the squeeze and Perry has an oversized hemmaroid .............. this is a long term messy situation that Perry will be long dead and gone before it is solved .......... jobs???????
BahamasB2B 8 years, 9 months ago
Mr Christie and company are acting in an immature, vindictive manner, fueled by ego, pride and political deception. While they might get short-term satisfaction from their antics, it will have a devastating long-term negative effect on the economy of The Bahamas. A true patriot would not do that.
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