Baha Mar “disappointed” by Bahamian Supreme Court ruling

A Bahamian judge ruled Wednesday that the island nation will not recognize the U.S. bankruptcy proceedings for beleaguered mega resort Baha Mar, a win for the commonwealth which is facing a potential credit downgrade as a result of the unfinished property’s troubles.

Recognition of the Chapter 11 U.S. bankruptcy filing would have prevented creditors from taking action against Baha Mar Ltd in the Bahamas.

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Baha Mar, the most expensive private project in the Bahamas history, broke ground in Nassau’s Cable Beach area in February 2011.

The Supreme Court’s decision sets the stage for a provisional liquidator to be appointed by the Court on July 31, 2015, should no agreement be reached between the parties.

FILE – In this February 21, 2011 file photo, Baha Mar Resorts CEO Sarkis Izmirlian, center, stands between Export-Import Bank of China President Li Ruogu, left, and Bahama’s Deputy Prime Minister Brent Symonette during the groundbreaking ceremony for a Baha Mar resort in Nassau, Bahamas.

CCA Bahamas’ motion to dismiss said the resort – and 14 of 15 entities that filed in the U.S. for voluntary bankruptcy in relation to the project – are located in the Bahamas.

“It is a matter of the greatest national importance for the resort to open as soon as possible”, the government said. The best way to guarantee the jobs of Baha Mar employees is to achieve a timely negotiated agreement, and we urge all parties to do so.

The developer filed for Chapter 11 bankruptcy protection in a Delaware court on June 29, claiming it faced debts of US$2.7 billion. Executives of Baha Mar Ltd travelled to China last week to meet representatives from China State Construction and officials from the project’s lender, Export-Import Bank of China. It’s not clear if any real progress was made during negotiations, but Baha Mar insists it is committed to reaching a consensual agreement. The five-hotel project originally had been scheduled to open to the public by the end of 2014 but has been marred by delays since, though it is said to be 97% complete.