The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Baha Mar’s joint provisional liquidators are assessing whether to seek Supreme Court permission to change their powers, following the appointment of Deloitte & Touche as the secured creditor’s receivers for the project.

Bahamian accountant Ed Rahming, and the UK-based Alix Partners duo of Nick Cropper and Alastair Beveridge, in a November 4 letter to Baha Mar’s vendors and suppliers, said they remained in office and were carrying out the duties handed to them by the Supreme Court on September 4.

They also, though, painted a somewhat confusing picture by suggesting that they remained in control of the seven Baha Mar companies placed into provisional liquidators, while Deloitte & Touche is now responsible for the companies’ assets.

“The provisional liquidators currently remain in office, and their duties remain as those set out in the Appointment Orders handed down by the court following their appointment on 4 September 2015,” the letter to Baha Mar suppliers read.

“Following their appointment, the receivers now assume responsibility for the assets of the companies, and the provisional liquidators remain in control of the companies and are currently considering whether it is necessary to apply to the court to amend the powers granted in the Appointment Orders.

“Until such time as directed by the Court, the provisional liquidators will continue to act in the interests of the companies and all creditors of the companies.”

The Deloitte & Touche team, consisting of Bahamas managing partner, Raymond Winder, and Hong Kong-based colleagues Lai Kar Yan and Darach Haughey, were appointed as receivers and managers “over all the assets, property and undertakings” of nine Baha Mar companies on October 30, 2015.

This was done at the behest of Citibank’s Bahamas branch, which is acting as the ‘onshore security agent’ for the China Export-Import Bank, the $2.45 billion financier and secured creditor of Baha Mar.

However, giving an indication of where the ‘real power’ now lies, Baha Mar’s joint provisional liquidators told vendors/suppliers that the Deloitte & Touche receivers would now determine whether their services were necessary.

“The provisional liquidators are no longer in control of the assets of the companies, and as such no longer require the on-going supply of goods or services to the companies. You should consider any orders placed by the provisional liquidators on behalf of the companies to be cancelled effective October 30, 2015,” the letter read.

“If goods which were ordered prior to the receivers’ appointment are still required or if there are ongoing services which are still required, we understand that the receivers’ team will contact you directly to form a contract with you for the delivery of the goods or the continuation of the services.”

While it remains ‘business as usual’ for the Melia Nassau Beach Resort, the provisional liquidators urged suppliers to submit payment statements to them for services rendered between September 4 and October 30.