THIS WEEK IN THE BAHAMAS (29 JUNE – 3 JULY 2015) ELCOTT COLEBY
viagra canada levitra times;”>
The bankruptcy filing by the Baha Mar group of companies in a Delaware court on Monday, 29th June 2015 and the subsequent law suits, court applications and proceedings that followed dominated news this week in The Bahamas. Even as Prime Minister executed is final official duty in Bridgetown, Barbados as the outgoing
CARICOM Chairman, he spoke fairly extensively about the impact of Baha Mar on The Bahamas and the broader picture of the vulnerability of SIDS that rely on sizable Foreign Direct Investment for economic growth, development and stability.
WE HAD A DEAL
“Yet despite the good faith efforts of the government and its best endeavours, the developer chose instead to file for bankruptcy of the project in the American courts where the companies who own the project are registered. This was done without notice and with the developer sitting at the table on the face of it seeking a settlement.”
This sentiment expressed by Foreign Affairs Minister Hon. Fred Mitchell at a CARICOM roundtable dialogue summed up the feeling of the Bahamas government in the wake of the bankruptcy filing by Baha Mar without notice. He delivered these remarks on behalf of the Bahamas Prime Minister who had pressing matters at home and could not participate in the dialogue on Vibrant Societies on 2nd July. Court documents revealed that the chapter 11 protection filing was in progress for a number of months leading up to the 29th June 2015 filing event.
Readers would recall that Prime Minister Christie notified the House on the final day of the 2015/2016 budget debate of some encouraging news he received from the China Export Import Bank (EXIM Bank) on a settlement between the three principals that would pave the way forward for the stalled Baha Mar project. The Prime Minister indicated repeatedly that the priority of his government was the completion and opening of the resort.
But what was the deal in principle The Bahamas government thought they had secured through their “good faith efforts” and “best endeavours?” to move the project to completion? Sources claim that the cost to complete the project was pegged at $300 million. The financier, EXIM Bank, agreed to contribute half, or $150 million; the developer Sarkis Izmirlian would contribute $75 million and the China Construction Company would contribute $75 million. The EXIM Bank also required the project completion figure of $300 million to be certified by a reputed Quantity Surveyor in addition to a personal guarantee from the developer.
On the morning of 29th June 2015, the developer assured the government that a settlement was imminent and on course.
BAHA MAR FILES FOR BANKRUPTCY
On Monday, the 29th June 2015, the fifteen companies that make up Baha Mar filed for chapter 11 bankruptcy in a Delaware court to protect Baha Mar from its creditors including the financier, the EXIM Bank and the general contractor, China Construction of America (CCA); there were numerous Bahamian and foreign creditors. Fourteen of the fifteen companies that make up Baha Mar are listed in The Bahamas. In its press release on the court filing, Baha Mar said that it remained committed to the pursuit of an early and definitive settlement of outstanding differences with their creditors and thanked the Bahamas government for their work during this settlement process.