The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The FNM’s deputy leader has dismissed calls by political rivals for the Government to set a date for Baha Mar’s ‘nationalisation’, warning it brought back memories of the Hotel Corporation’s woes.

Arguing that any resolution to the Baha Mar saga is likely still “a long ways off”, K P Turnquest told Tribune Business that the Government’s strained fiscal position meant it lacked the funds to complete the $3.5 billion development were it to take the project over.

The ‘nationalisation’ idea came from Democratic National Alliance (DNA) leader, Branville McCartney, who last week urged the Government to set a date for when it would nationalise the Baha Mar project.

He argued that this was ‘a last resort option’ if the parties to the dispute failed to make progress on a resolution, but said Baha Mar was a ‘special case’ for government and public policy intervention, given its enormous potential impact for the Bahamian economy and the thousands of jobs that were at stake.

However, Mr Turnquest told Tribune Business: “That’s an interesting concept considering that we have had a history of the Government taking over hotels through the Hotel Corporation, and none of them have produced any favourable results.

“Even if the Government were to take it over, they would still have to find the funding to complete it. That is not something I believe we are able to take on given the fact that we have a debt overhang at the moment that has got us in the danger zone.

“The Government would also become a direct competitor to the people they license and regulate, which is not fair. It would not be a good idea, in my opinion.”

Justice Ian Winder last week approved a further five-month delay to the Government’s Baha Mar winding-up petition, in a bid to give the ongoing sales process - which has attracted has attracted 16 prospective buyers - time to play out.

Baha Mar’s receiver, Raymond Winder, told reporters after the closed hearing last week that there was a “good expectation” the resort would be sold before the matter returns to court on September 30.

However, Mr Turnquest said: “The reality is that we are still a long ways off from any resolution to this matter. While I have the greatest respect for the receiver, Mr Winder, I cannot help but be sceptical that this is going to be resolved by the fall, as he put sit.

“We all know that the issues confronting Baha Mar are not insignificant. In as much as they are able to conclude some form of sale or restarting of that project by the fall, we know that it’s going to be another six months before any real activity happens on that property, just based on the admitted level of work that needs to be done.

“I hope that we are beginning to make progress on a buyer. It will be a massive undertaking for whoever is willing to take it on.”

The opening of the 2,000 plus room resort was scheduled for December 2014, but was delayed to March 2015 and again to May 2015. Baha Mar’s developer then filed for bankruptcy protection in the US on June 29, 2015.

However, the Supreme Court rejected the resort’s application for the matter to be recognised in this jurisdiction. A US judge later threw out the bankruptcy protection for Baha Mar’s Bahamian companies.

Joint provisional liquidators (JPLs) were appointed in September to protect and prevent the depletion of the resort’s assets before an expected full winding-up took place. Baha Mar was then placed into receivership in October last year.