CEO wants no hidden agendas

Baha Mar’s original developer Sarkis Izmirlian.

As of Monday, July 20, 2015

By TANEKA THOMPSON

Tribune News Editor

tmthompson@tribunemedia.net

BAHA Mar CEO Sarkis Izmirlian pleaded with all parties involved in the ongoing dispute surrounding the resort to continue negotiations for a compromise without “hidden agendas”.

In an apparent reference to the government and Baha Mar’s Chinese partners, Mr Izmirlian said it would be impossible for all involved to reach an agreement if some parties were “planning other actions” in the background.

Mr Izmirlian said he has written to Prime Minister Perry Christie, who he respects, asking the nation’s leader to put an end to the “legal wrangling” so that all parties can come to an agreement to get the resort finished and open as soon as possible.

In his most recent letter to Baha Mar employees on Saturday, Mr Izmirlian also said the resort is continuing talks with its lender and general contractor to reach an agreement and will do so as long as all sides are willing to sit at the negotiating table.

In his letter, the embattled developer also hinted at the emotional turmoil the past “frustrating” week has put him through and acknowledged that the media frenzy surrounding the stalled project must be “agonising” for the resort’s staff.

This came days after Mr Christie announced the government has filed a winding up petition against Baha Mar in the Supreme Court to take the fate of the project out of the developer’s hands and under the control of provisional liquidators supervised by the Bahamian court.

“ . . .We ask that all the other parties concerned come to the table with a real spirit of compromise, and no hidden agendas,” the developer wrote. “I believe that if that is the case then a solution can and will be found. If parties are communicating in the background and planning other actions, it is impossible for all parties to find a consensual solution.”

He also said: “We are continuing to engage with both our lender and our general contractor to find a solution. We will continue to do so as long as long as all parties are willing to come to the table.

“We will not get up from the table until we find a solution.”

And even though court documents filed in support of Baha Mar’s bankruptcy filing on July 10 said the resort would be forced to scale staff down to a “skeleton operation” of about 50 workers if an agreement with its lender cannot be reached by today, Mr Izmirlian stressed in his letter that all of the resort’s legal actions “are only meant to protect you, Baha Mar, and the investment of time and money that my family and I have put into Baha Mar.”

He added: “. . .I am so thankful for all your emails and calls this past week. While admittedly this has been a frustrating week for me, I cannot imagine what you are going through. As I sat down to write to you today, I reminded myself of our core values, the most important is to care deeply. This value goes into everything we do at Baha Mar, and is what I am most proud of as I look back over the past 13 years.

“ . . .I care deeply about the uncertainty this has created for all of you. I care deeply about not yet being to provide all of you the opportunities and careers you deserve.

“In the next days we will continue to take all necessary legal actions to protect all our interests. However, I have also written today (Saturday) to the prime minister, for whom I have the utmost respect, asking for a cessation of the legal wrangling in order to give all parties the necessary time to stay at the table, and continue to negotiate in earnest to achieve a compromise that enables Baha Mar to be completed properly and opened successfully as quickly as possible.”

On Thursday night, during a national address, Mr Christie said the compulsory winding up procedure would allow “a neutral party” to take over the process and get the resort on a workable path to completion and opening.

Last Monday, Baha Mar began new talks with its lender, the Export-Import Bank of China and China State Construction Engineering Corporation, the parent company of its general contractor, to hopefully come to an out of court agreement.

While the government has said those talks fell through without an agreement, Baha Mar has insisted discussions were continuing. Mr Christie said during those talks, Baha Mar said it needed increased funding and refused to immediately drop its bankruptcy filing and lawsuit against its contractor.

Baha Mar filed for Chapter 11 bankruptcy in a US court on June 29.

JohnBuchanan 8 years, 9 months ago

No one believes Izmirlian anymore and that is his real problem. He has alienated the Bahamian government, China State Construction and ExIm Bank of China. Now he will pay dearly for those mistakes, both literally and figuratively. Baha Mar has never been honest with anyone about anything. It has been a game of lies and deceit all along. And Izmirlian must be held fully accountable, along with his incompetent "management team." The government should order a forensic audit of the books as a starting point to figure out what went wrong and where the money went.

banker 8 years, 9 months ago

I used to think that you were an unbiased reporter. Not so certain anymore. Certainly your judgement is in askance with your support of Donald Trump. I am wondering what agenda you are pushing. Who is paying you?

JohnBuchanan 8 years, 9 months ago

My posts about Donald Trump are a JOKE and done for the amusement of my Facebook friends. That has nothing to do with my serious posts about Baha Mar. I have predicted ever since my Hotel News Now scoop in the U.S. that the March 27 opening was a scam that Izmirlian would be ousted. He has no support left anywhere that I can see... and he brought the ending on himself with very bad decision making, the worst of which was publicly embarrassing China, which is the ultimate no-no in terms of culture. They are just playing with him now until the end comes, which appears to be coming soon.

Hogfish 8 years, 9 months ago

" The government should order a forensic audit of the books as a starting point to figure out what went wrong and where the money went."

this comment just caused your credibitly to get thrown out the window.

JohnBuchanan 8 years, 9 months ago

Really? So all the money vanishes and it turns out NO ONE has been paid in full, even the government for business licenses or gaming fees. And you're OK with that? The list of creditors in stunning in length and number. I believe that there is financial malfesance involved. I guess time will tell.

newcitizen 8 years, 9 months ago

It's private money, in a private company. Is the government going to audit your personal finances to see what you spend your money on?

banker 8 years, 9 months ago

I would suggest that you are unfamiliar with the government of the Bahamas, and the intrinsic and endemic level of corruption, cronyism and kleptocracy within its entire rotten structure. It is incapable of any discrete, intelligent action of any worth at all. It cannot even hold a referendum to give women constitutional equality, even though it has been promised for years.

GrassRoot 8 years, 9 months ago

The Bahamian Government has alienated itself. It is always forgotten, that Izzy belongs to the most powerful trade union. The one of billionaires and gazillionnaires. What you do to one of them you do to all of them. We finally are on the level of Nicaragua and Venezuela, where the government can send in liquidators and seize your assets all day long. All we need now are a Bahamian version of the tonton macoutes. Then the reign of Scar (a/k/a PGC) is completed.

Zags 8 years, 9 months ago

That's rather a blanket statement!

Are you saying that "no one believes" him; or, that none of the involved parties believes him?

I tend to believe him...

JohnBuchanan 8 years, 9 months ago

His "team" has misled the Bahamian government, ExIm Bank of China, China Construction, the three hotel brands, the U.S. and world media... to me that is "everyone." I can't think of anyone else that matters, except Izzy's father, who might be about to see the fortune he amassed go down the drain.

licks2 8 years, 9 months ago

Drip. . .drip. . .drip. . .drip. . .drip. . .drip! I prefer to listen to a leaky forcet than any stuped political clap trap right up in now. . .SORRY!

Chucky 8 years, 9 months ago

JohnBuchanan, are you crazy? Do you think Baha Mar is owned by us, or by our government? It's a private company! Sure its big, sure it might create lots of jobs, but it's still a private company. You also can't be serious in expecting a private business owner to be honest with anyone can you? Do you think business guys tell only truths?They make their money by making things appear to cost a lot, and charging a lot, while doing work/ supplying goods / providing services as cheaply as possible, there is no honesty in that! Why should Izmirlian have to open his books, or tell the PM everything? Izmirlian does not owe thousands of Bahamians jobs! Nor does he owe the Bahamas and increase in GDP due to his own enterprises success, in fact, it is due to the governments excessive mismanagement of funds that creates this dire need to have the GDP of Izmirlians PRIVATE DEVELOPMENT. Look how much they have given us already, look how much this development has given us already, just in new roads and infrastructure. It's attitudes like yours, that of such entitlement that cause such damage to our reputation, and actions such as our government is taking now which will ultimately be our demise via fright of investing here by anyone in the future!

Publius 8 years, 9 months ago

@Buchanan - You are clearly a hack. You are all over different websites slandering Izmirlian as though you have a personal vendetta against him and as though you are obsessed with him.

TalRussell 8 years, 9 months ago

C'mon John Buchanan, relax no need be popping ya blood vessels cuz even News Editor Taneka, has knows "negotiations for a compromise - without hidden agendas," gives rise most laughable words ever attributed to have come right out mouth of da embattled in his own actions Izmirlian?
Taneka, you got's kinds sense humour, long absent off pages Tribune. Ever thought about moving up into chair of Shirley & Deveuax Streets - publisher?

John 8 years, 9 months ago

The vultures are circling BAH MAR. The carcass is fat and ready for the taking.

Romrok 8 years, 9 months ago

You are nuts John, the government cant organize its own books, and you trust our government to be fair in a audit? Delusional comes to mind.

Sarkis could have done such a project anywhere in the world, and worked with governments that want investment and will do anything to help such a thing off the ground. Hell the STATE of Georgia invested $400,000,000 to get Kia to build a plant there to employ like 3200 people.

Our government is the government that says "we are the place, where else will you go". Strong arming investors is not the way to conduct business, and since this is business, why is the government involved? Where is Bacardi now due to our governments greed? Puerto Rico, so it turns out there is other places. I dont see Obama or Cameron meddling in this stuff... The government should issue permits, licences, etc and stay the hell out of it. The man isnt gonna screw us, he wants to make money, so why would he sabotage it.

The question you should ask, is why did he invest here, knowing full well how bloody crooked this country is? God knows how many hands are out for his money every day in government offices, no less these damn MPs.

killemwitdakno 8 years, 9 months ago

He can't screw us because chapter 11 means he's locked into reorganizing.

GrassRoot 8 years, 9 months ago

all this government does is make Baha Mar impossible. not a good idea to start law suits. they all will go to Privy. I also wonder whether the court in Delaware will issue orders not to liquidate the assets. Effectively what the government is doing is it takes the substance of bahamar and gives it the CCA. The Bahamian contractors will get squat. The Bahamian contractors may get their money through the Chapter 11 but certainly not if the Bahamian government meddles with the private sector and private ownership.

PKMShack 8 years, 9 months ago

Romrok right on the mark. Gov has no need to be in private business. they need to put that effort in finding carnival money

DEDDIE 8 years, 9 months ago

This could get messy because all the key decision makers in the PLP are lawyers. Lawyers don't take on cases base on whether they can win or lose but on the clients ability to pay.That clouded way of thinking handicaps most lawyer ability to rationally think cases through. My greatest concern is that the government don't have an end game. The urging by Mr. Gomez strikes me as bluffing.

MonkeeDoo 8 years, 9 months ago

Oh Lord - Carnival money still sleeping out ! Ya tink someone in da gubment is a tief ?

johnmcntsh 8 years, 9 months ago

New Providence, Capital of the Bahamian Republic of China. You have been bought and the people never saw it coming. So sad for such a beautiful country filled with such beautiful people. China will now own 10% of your countries GDP. You are officially owned and your government is nothing but a puppet now

classyladykatie 8 years, 9 months ago

John, you are so profoundly correct it's scary and sad. I don't want to be a Chinese...I'd they infiltrate , which I believe is their goal, we won't be a sovereign nation anymore. I love my country and don't want foreign entities or governments dictating to or taking us over. This is serious.

johnmcntsh 8 years, 9 months ago

I am from the U.S and I do not want our government owning your country. I love the Bahamas and am so afraid that things are changing and it will not be pleasant. Think Hong Kong. It is so very, very sad. You are your own country and your own people and to see this happening is sickening. The Chinese are telling your PM what to do and he is doing it. Bought and paid for. State Constuction is

The_Oracle 8 years, 9 months ago

Strange bedfellows to begin with, as who in their right mind would get involved with ANY Government of any country, particularly the Bahamian or Chinese Governments! No doubt seizure and resurrection of the Hotel Corp to run it has been discussed, and we know how that will end.

TalRussell 8 years, 9 months ago

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