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Sarkis Offers Extra $200m

Baha Mar’s original developer Sarkis Izmirlian.

Baha Mar’s original developer Sarkis Izmirlian.

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

SARKIS Izmirlian, the developer of Baha Mar, is willing to commit up to $200m to jump start the stalled $3.5bn Cable Beach project, lawyers for the mega-resort told a United States bankruptcy judge yesterday.

During the bankruptcy court hearing in Wilmington, Delaware, lawyers for Baha Mar Ltd did not provide details of the terms necessary for Mr Izmirlian’s commitment for the $200m and other parties in the dispute did not respond to the comment from the Baha Mar attorney during the proceedings, which lasted less than ten minutes.

Baha Mar has also not ruled out appealing Supreme Court Justice Ian Winder’s decision to reject its application for approval of its US Chapter 11 bankruptcy proceedings in the Bahamas. A high-ranking source at the resort told The Tribune yesterday that no decision on the matter has been made as yet.

Roy Sweeting, the attorney who represented the resort during this week’s hearing before Justice Winder, said: “There isn’t a plan yet. We have to receive the judge’s decision before we can make (a decision on appealing).”

On Wednesday, Justice Winder said he would release the reasons for his ruling in writing within two weeks.

Mr Izmirlian has blamed China Construction America (CCA) for the delays that forced the resort to miss several opening dates. CCA says his development team mismanaged the project, in which Mr Izmirlian has invested up to $900 million.

Baha Mar, which when finished will feature a Las Vegas-style casino and more than 2,000 rooms in four hotels, is reportedly nearly complete, but construction stopped months ago because of a dispute between the developer and CCA. Baha Mar filed for Chapter 11 bankruptcy protection in Delaware last month but has been negotiating with the China Export Import Bank, which bankrolled most of the project with a $2.45 billion loan. However, no deal has been struck.

Baha Mar, the government, CCA and China Export-Import Bank will be back in the Supreme Court on July 31 at a hearing on the government’s petition to wind up the company. All sides have publicly expressed a desire to settle the matter out of court before then, even as the developer and its Chinese partners continue to make accusations during their legal proceedings in the Delaware bankruptcy court.

A top government official told The Tribune yesterday that it is hoped the temperature of relations between the various sides will decrease to a level that makes an agreement possible. In discussions with this newspaper, government officials have nonetheless been sensitive not to say anything on the record that could negatively affect the negotiations.

And with the next pay day for Baha Mar employees next week, officials hope an agreement could be struck among the parties so workers could be paid by the resort’s developer.

After the Supreme Court initially adjourned a hearing into Baha Mar’s bankruptcy application, the government paid Baha Mar employees’ salaries on the last two pay dates.

Baha Mar and CCA are said to be in ongoing discussions to reach an out-of-court deal. The China Export Import Bank will work out financial terms to support such a deal, once an agreement is made, the government has said.

What is unknown is whether the parties’ legal battles in the US reflect their current attitudes during negotiations.

On Monday, CCA filed a motion in the Delaware court seeking a speedy hearing for its attempt to have the entire Chapter 11 process suspended. The motion was dismissed, but in objecting to the request, Baha Mar on Wednesday accused CCA of being “selfish,” “reckless,” and of attempting to undermine their out-of-court negotiations. The resort also accused CCA of employing “litigation tactics” that have the potential to “punish and hurt employees, customers, critical vendors, brand partners, utilities, insurance providers, and other innocent third parties.”

On the same day, Baha Mar stressed in a letter to employees that the Supreme Court decision did not affect their work status. After the resort filed for bankruptcy on June 29, most of its employees were told to stay at home. Their fates remain in limbo until the Baha Mar impasse is resolved.

Comments

sheeprunner12 3 years, 4 months ago

Why would he want to do that?????? For God's sake ........... run!!!!!!!!!!!!!!!

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TalRussell 3 years, 4 months ago

Comrades have you not had all you can take from Izmirlian. The PM must immediately yanks away this man's crutch from under his arm pits - his using his last and only straw left in his bag tricks stop him from being physically evicted off Cable Beach premises - repeatedly using the names native workers, or as he likes call them, his "Citizens." Comrade Buddy, it's Cable beach over - move on. And, leave that "extravagance of a dock" that you ordered be extended -all ways out into da Atlantic Ocean. If it was going sky-woods, tourists would have been able walked out reach earth's closest planet Venus. Now, we're talking tourist attraction. We can only imagine how far that "dock' would have been extend to reach - had Izmirlian not run out money - for sure it woulds have wrapped itself around bend of Fort Montagu.

...........https://www.youtube.com/watch?v=XalNM...">https://www.youtube.com/watch?v=XalNM...

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asiseeit 3 years, 4 months ago

TAl, sorry to say but your Bahamian pride is misplaced.

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TheMadHatter 3 years, 4 months ago

Tal you just keep it up, until we're all fishing off the rocks.

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TalRussell 3 years, 4 months ago

Comrade, first we'd need permission fish off rocks from da Dominicans, that is if we's still got's any fish left to fish for? Boy we sure boxed we selves into a mess, for a such a small islands nation.

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newcitizen 3 years, 4 months ago

I'm confused. Do you doubt it, or are you unsure if you doubt it?

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MonkeeDoo 3 years, 4 months ago

ikalikl: You would be better to speak in the past tense as opposed to future. All of these things have already come to pass. Comrade Tal in another place would be a suicide bomber for the government I think. The country has GONE They have sold out Irrevocable damage has been done already It is too late

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MonkeeDoo 3 years, 4 months ago

Does anyone know how, ( in law ) the Government can arbitrarily "pay" the BAHA MAR employees out of money that it owes the hotel ???? Maybe I could pay for my groceries out of money that I owe to Finco for my mortgage ? How does that work ? My head is spinning ! Surely they will still owe the money for the road work ?????

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TalRussell 3 years, 4 months ago

Comrade, workers at Baha Mar must also be looked upon as unsecured creditors - meaning a bankruptcy judge, would not be lenient towards anyone who bypassed secured creditors with cash payments monies, which the government have admitted is out of monies owing by government to Baha Mar.

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DEDDIE 3 years, 4 months ago

Actually, I thought the exact same thing. Unless BAHAMAR consent to such payments, legally the Government still owes them the full amount.

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Well_mudda_take_sic 3 years, 4 months ago

The same way they have been bleeding our National Insurance Fund dry all of these years under the guise or pretense of the National Insurance Board making profitable investments for the beneficiaries of the Fund.

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TalRussell 3 years, 4 months ago

Comrade, what makes you think the Chinese would want bribe anyone in Bahamalnd. In China, the central government have and continue to arrest and publicly shamed, many business owners/managers, and high level government officials and politicians - for accepting bribes. Has anything happened to the the local BEC official, over the quarter million dollars bribe? And, i think they hails from that other political regime's time in power?

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sheeprunner12 3 years, 4 months ago

Corruption knows no colour ............. UBP, PLP, FNM and wateva

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TalRussell 3 years, 4 months ago

Comrade even izmirlian's legal brains will tell him, soon, very soon the bankruptcy Judges(s) (out Delaware & Nassau Town) are going to summon him and other officers before them, to examine the affairs, by asking lots of questions of the trustee and its senior officers, all about the bankrupt Baha Mar. Only time will tell, if the media will be allowed be present. Them drilling questions have been known makes many a man's and woman's sweat. The late great legal brain Paul Adderley told me once, Comrade Tal, try not sweat too much when under tough questioning? Let me tell you, the advice didn't work-out too well for me, once I was under the gun. I dripped likes I was rushing over the Niagara Falls, in a tub.

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newcitizen 3 years, 4 months ago

Tal's just a troll, don't feed her.

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TheMadHatter 3 years, 4 months ago

This article is dedicated to all those around the world, for whom losing $900 million just isn't a big enough loss.

Heck, let's throw in another $200 million just for "good measure".

TheMadHatter

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TalRussell 3 years, 4 months ago

Comrade that 900 million has never passed the sniff test by anyone, much less two different highly accomplished court appointed Trustees and two seasoned bankruptcy judges (out Delaware & Nassau Town). But there is good reason to believe that 500 million of it, was said to have already been spent by the time the year 2010 had ended?
Baha Mar came about in when - 2012? Granted, some may have been rolled over into Baha Mar, but it remains be known, exactly how much of the 500 hundred millions went into Baha Mar, and for what?
I guess we are soon to find out?

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TheMadHatter 3 years, 4 months ago

Ah, so you are reminded then of the Janet Jackson song "What have you done for me lately?" ........... I see.

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wave 3 years, 4 months ago

Smart, smart, smart it's almost impossible to put a value on goodwill !

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birdiestrachan 3 years, 4 months ago

I hope this man can get his project completed. This is his dream. and there are many persons who are depending on the success of this project to live and provide for their families . The government prays for the successful completion also, so that the unemployment rate can go down. The only group that does not really have to care is the Bank. they never ever lose..

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sheeprunner12 3 years, 4 months ago

Thanks Birdie .................... aka Bradley Roberts alter ego

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TalRussell 3 years, 4 months ago

Comrades I'm no loans officerer but don't need be banker qualified to ask, what in the name of Jesus, would have led the Chinese Bank and China State Construction Company, Bahamas Cable, BEC, or any other big or small creditor for that matter, to think that although Baha Mar - never paid back Bank Nova Scotia their loan of 200 million dollars, that they would pay them? I find that the bankers joke da year. That has be the equivalent, if yeas ago you had deposited your monies at da late Ortland H. Bodie Sr's, bank, for safe keeping over on Wulff Road. And, that's no joke cuz cost me $3000 to learn the Bodie experience.

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birdiestrachan 3 years, 4 months ago

Darron Cash has lost his mind... He is on TV saying that his Papa Ingraham can solve the Baha Mar problems all by himself.

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SP 3 years, 4 months ago

...................... Perry Gladstone Christie is WAY OUT Of His League .....................

Sarkis Izmirlian with his "nation" will have Christie's ass on a hot platter in very short order!

His deliberate actions of absenteeism from the region and show of power with his nation speaks volumes to those in the know.

Christie was so busy (unnecessarily) trying to save face from the chapter 11 so called blindsiding; he's now made a formidable enemy that he simply CANNOT EVER BEAT!

All Sarkis wanted was value for dollar from the construction company that EVERYONE ALREADY KNEW had produced shoddy workmanship.

What else was Izmirlian supposed to do to resolve the issue?

Christie has once again proven without doubt that ......Jackass Does As Jackass Is!

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marrcus 2 years, 5 months ago

"Ok so Steve Mckinney just reported that CCA owns Bahamar.....yes ppl the Chinese Construction Company.the SAME one in that owns the HILTON.....they are the "NEW OWNERS". And he goes on to say the Chinese has demanded a list of FIFTEEN things of which 13 sign off already. Some we have already heard like they don't want to pay custom duty, no VAT no casino tax, they are demanding 500 BAHAMIAN citizenships for 500 CHINESE BILLIONAIRES. But wait for it guys....they have demanded 1200 NEW WORK PERMITS for Chinese workers AND....are you listening AND half of the THREE HUNDRED plus MILLION it will take to finish BAHAMAR. Yes ppl they not only want tax exemptions, work permits and citizenshipssss... They want us to pay to be GOOSIED. Let's pray Steve Mckinney is wrong...oh yeah it was also mentioned that the Chinese has been given A BAHAMIAN island off Acklins to harvest Cascarilla tree/bark.. the thing used in perfumes. And YUP you guessed it NO BAHAMIANS ALLOWED!!! But we still believe in YOU though...mmmm "

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