The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Baha Mar’s joint provisional liquidators have warned they will “not adopt” non-Melia supply contracts that were agreed by the $3.5 billion developer prior to the September 4 appointment.

Bahamian accountant Ed Rahming, the KRyS Global accountant and partner, and UK duo Nick Cropper and Alastair Beveridge, said they would contact local and international vendors directly if they still needed the products and services.

While Melia Nassau Beach Resort suppliers were told to continue submitting purchase orders and invoices in the normal way, the joint provisional liquidators warned: “If you are a supplier to the remaining companies (other than Meliá Nassau Beach Hotel), please note that the provisional liquidators are not adopting contracts entered into by the companies prior to the provisional liquidators’ appointment, and you should obtain our agreement that undelivered goods or services ordered before the appointment are still required before you deliver them.

“If goods which were ordered prior to the provisional liquidators’ appointment are still required, or if there are services which are still required, the provisional liquidators’ team will contact you directly to request the delivery of the goods or the continuation of the services. All purchase orders going forward should be signed and approved by the provisional liquidators.”

Mr Rahming and his UK colleagues also warned Bahamian vendors owed money by the non-Melia part of Baha Mar that their claims had been “stayed” until a commercial resolution to the dispute impacting the $3.5 billion project was secured.

“If you are a supplier to the remaining companies (other than Meliá Nassau Beach Hotel), the claims of all unsecured creditors have been stayed while a compromise is sought on a way forward that will enable the Baha Mar project to be completed and opened as soon as possible,” the trio warned

“It is not within the powers of the provisional liquidators to agree the claims of unsecured creditors and make distributions to them.”

For those companies with security or legal title to goods supplied to Baha Mar, the joint provisional liquidators told them to contact the project’s head of security, Tony Whiddon.

Their claims will then be assessed, with no one allowed to remove goods from Baha Mar without their permission.

Meanwhile, Tribune Business has been informed that the provisional liquidators have received Supreme Court approval to borrow $25 million to meet both an $8.7 million insurance payment and $16.262 million in anticipated costs between now and when their work ends on November 4.

Justice Bernard Turner has also approved the withdrawal of Baha Mar’s appeal against the Supreme Court’s refusal to recognise the Chapter 11 bankruptcy proceedings.

The joint provisional liquidators are being represented by Alfred Sears QC, the former attorney general, together with Raynard Rigby and V. Moreno Hamilton.