By AVA TURNQUEST
Tribune Chief Reporter
aturnquest@tribunemedia.net
THE government yesterday expressed “hope” that the claims of former Bahamian workers at Baha Mar will be settled by the end of next month, with all other claims to be dealt with by year-end.
In a statement released yesterday, the Christie administration also revealed the establishment of a stakeholder committee to administer creditor claims; however, there was no information given on how the process would be conducted, its timeline, or the amount of funding allocated for claims.
The members of the newly formed committee are: former Minister of State for Finance James Smith, CBE; Grant Lyon, liquidation claims advisor to the government; Yanping Mo, representative of the Export-Import Bank of China; Norbert Chan, representative of court appointed receiver Deloitte & Touche; and Tiger Wu, representative of China Construction America (CCA).
The statement read: “On August 22, 2016, the Supreme Court approved the plan to remobilise the resort. Part and parcel of the remobilisation was the acknowledgement and provision of funds to deal with the claims of unsecured creditors, in particular Bahamian creditors, in accordance with an agreed formula and a process for the assignment of those claims.
“It is important to note that these claims are being paid from monies which have been made available by the bank, as the Baha Mar companies in liquidation have no assets from which to pay creditors.
“The bank will shortly place on deposit in the Bahamas the funds necessary for the work of the committee; to settle the Bahamian employees’ related claims as outlined by the prime minister during his address to the nation on August 22; and to administer and pay the claims of Bahamian creditors, according to the process which has been indicated.”
It continued: “Further announcements on the specific details of the process will come from the committee. The government hopes that Bahamian employee claims will be settled no later than September 30, 2016 and that all other claims will be dealt with on or before December 31, 2016.”
Prime Minister Perry Christie announced that a deal had been reached between the government and CEXIM to remobilise the stalled resort during a nationally televised address last Monday.
He said former employees would be paid monies owed to them and Bahamian creditors and contractors with claims would get a substantial portion, if not all, of what was due to them.
However, the highly anticipated address did not provide any clarity on a definitive buyer or sale price, or details on how unsecured creditors will be paid. Mr Christie has insisted that lawyers have instructed him not to divulge more specific details because of the sensitivity of the matter and the amount of money being transacted among parties.
Mr Christie has since come under repeated fire for the lack of specificity of his announcement, with detractors seeking to impugn the decision to have the court documents relating to the Baha Mar agreement sealed.
During his 2016/2017 Budget Communication in the House of Assembly in May, Mr Christie announced that the government and Chinese officials had entered into a “framework agreement” to complete the stalled Baha Mar resort as “expeditiously as possible”.
At the time, he said that talks were underway between CCA Bahamas and the resort’s court appointed receivers to agree to appropriate terms for construction to recommence and to prepare a construction agreement to provide the timeline for the project’s completion.
Closing out the debate several weeks later, Mr Christie also revealed at that time that Baha Mar’s receivers had shortlisted two groups, one with a Bahamian investor connection, as potential ‘preferred bidders’ for the $3.5 billion development.
Referring to the highly speculated ‘investment incentives’, Mr Christie explained that the matter required negotiations with the new investor, who had not yet been decided on by CEXIM.
He added that he had asked the bank and its receivers to “separate” Baha Mar’s construction completion from the task of finding a purchaser.
Appearing as a guest on the “Ed Fields Live” show on KISS FM in July, the prime minister said he believed the Export-Import Bank of China was prepared to present a possible buyer for the beleaguered $3.5 billion Baha Mar resort, and declared that a resolution was “imminent”.
The mega resort was first scheduled for December 2014 opening, but was delayed to March 2015 and again to May 2015.
The property was placed into receivership last October.
Comments
banker 7 years, 7 months ago
Interestingly enough, there has been a shift in China. They have started paying their bills and spending money abroad. Their foreign reserves spending the in last few months is already 4 times what they have spent in 2015. Economic analysts surmise that they are trying to solve their domestic economic problems by investing in foreign companies. The Chinese want to diversify their economy from manufacturing cheap Walmart goods to high tech manufacturing to keep their economy healthy. http://www.reuters.tv/v/Dhu/2016/08/2...">http://www.reuters.tv/v/Dhu/2016/08/2...
The economic diversification was the same strategy and vision that Hubiggity had when he proposed the Third Pillar back in 2002 and the criminal PLP and sheeple populace fought it tooth and nail, and now the crumb-catchers are applying for their own job back at Sandals. Hubigetty had plans to totally wire the island, make it a hosting center for eCommerce and the internet and grow the knowledge sector of the economy.
Now we are begging the Chinese to pay their bills, and hope and pray that they dole out some money, and finish Baha Mar so that it can sold. Knowing how they built the original, no one will want to buy it, especially with all of the rice poop on the carpets of the unfinished rooms.
At least there may be a chance for some Bahamians to get some money, but wait and see. The Bahamian overseers, Winder/Lightbourne et al will take their cut as an "administration" fee.
realfreethinker 7 years, 7 months ago
The same old tired shit " hope and help" All that bullshit coming out of his mouth an no hard and fast deadlines? Jokes
Well_mudda_take_sic 7 years, 7 months ago
In these types of situations where the Chinese know they have the upper hand over a corrupt but weak government like the Christie-led PLP government, they don't dole out a single dollar unless they know they will get at least a $1.50 back in return. For the Chinese it's now all about recovering losses and not earning money by working for it the old fashion way. Christie has obviously given away to the Chinese mega-millions of taxes and fees that we should have expected to collect from the Baha Mar development over the next 40 + years, not too mention promised significant electricity-cost subsidies, waste removal subsidies, marketing and airlift subsidies, as well as a whole treasure trove of Crown land. My oh my......there's nothing our Mugabe styled PM will not resort to for his own political survival and the unjust enrichment of himself, his immediate family and his cronies.
TalRussell 7 years, 7 months ago
But is it for real?
watcher 7 years, 7 months ago
"Hope" - what a way to run a country !! How about if they use crystal balls while they're at it, or maybe those unpaid local contractors can read the Tribune's horoscope section to estimate when their families will be fed next. For pity's sake Mr Christie, have you not done enough to us - isn't it time to go?
TalRussell 7 years, 7 months ago
by TalRussell
John 7 years, 7 months ago
HOW MUCH WILL BAH MAR LOSE by being delayed? In 2004 Atlantis had a total revenue of $680 million and a gross profit of $157 million and net profit of $58 million. That was before the Third phase expansion which saw the property size double so it is safe to guesstimate that Atlantis now sees gross revenues of at least $1.2 billion and net profits of at least $100 million. If you were to relate these figures to Bah Mar based on size and amenities one could modestly assume Bah Mar having an annual revenue of $700 million. Since the project will be delayed some three years if it is to open in winter 2017 one can safely assume lost revenue of $2.1 billion. And if you add on the lost in spoofs (employee salaries being spent , utilities being paid, goods and services being dupplied, taxes being paid etc., this figure quickly multiplies. The real amount may never be known but $3.5 billion would be conservative.
ThisIsOurs 7 years, 7 months ago
"He added that he had asked the bank and its receivers to “separate” Baha Mar’s construction completion from the task of finding a purchaser."
If there's no buyer how can they claim the hotel will open before winter season 2016/2017?
ThisIsOurs 7 years, 7 months ago
Can someone please explain the poop on the carpet? Were the workers randomly defecating anywhere in the hotel? Were they living in the hotel? Were these acts of defiance, sabotage or bad hygiene? And how long was that a problem?
banker 7 years, 7 months ago
Apparently the Chinese workers, instead of traversing all the way down to the Porta-potties would just find an empty room and do a squat. Saved them from going down a few floors and going outside.
If you have ever been to China, you will understand that this is a cultural thing. Saw people squatting all of the time, in the weirdest (and most open) places.
jusscool 7 years, 7 months ago
Prime Minister Pindling must be rolling over in his grave right now! The Governments of today is just a crying shame. Lord help us!
John 7 years, 7 months ago
Bah Mar is both a political football and an economic hot potato. It can easily go from being a cash cow to a white elrphant in an instant. There are not many potential buyers in the market willing to invest so heavily in a company that had a still birth and many labor pains. For the sake of all Bahamians and this economy let's hope the projects gets moving again and gets completed and opened. In the main time be watchful of this government to ensure they don't sell the soul of the Bahamian people for the sake of Bah Mar.
ashley14 6 years, 10 months ago
I'm here and I can't give them my business. I have heard and seen too much. Sorry I want success for the Bahamian economy but this Resort just seems to come with too many bad omens.
Sign in to comment
Or login with:
OpenID