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.
Advertisement
“We are even more disappointed in the way the government has responded to our Chapter 11 filing over the past several weeks”, Baha Mar Ltd. said.
To view the full article, register now.
That means the developer won’t get a new loan to pay for daily operations.
“Our Government has argued firmly that a Bahamian Court, supervising the work of an independent liquidator, is best suited to oversee the restructuring, completion and opening of the resort should Baha Mar, China Construction and Exim Bank be unable to reach an out-of-court agreement”, the government said.
The developer filed for Chapter 11 bankruptcy protection in a Delaware court on June 29, claiming it faced debts of US$2.7 billion.
In recent days, officials from the Bahamas, Baha Mar, China Construction America and Export-Import Bank of China met in Beijing to try and secure an agreement.
Advertisement
In a statement on Tuesday, quoted by the Wall Street Journal, Baha Mar Ltd said it would oppose the motion to dismiss but added that it wants “to achieve a consensual resolution of the issues” and is in ongoing discussions with both the contractor and the lender. Amenities will include a Jack Nicklaus Signature golf course; 200,000 square feet of flexible convention facilities, including a 2,000-seat entertainment venue; art galleries featuring Bahamian art; more than 40 restaurants, bars and clubs; global luxury designer and local artisan boutiques; and 20 acres of exquisitely landscaped beach and pool experiences, including a beachfront sanctuary with native Bahamian flora and fauna. 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.
