Baha Mar Developer Gets Court Adjournment to Resolve Dispute

The developer of the unfinished Baha Mar resort in the Bahamas on Tuesday requested and received a 13-day court adjournment from the Bahamas government as part of a plan to negotiate with its general contractor and primary lender, China State Construction Engineering Corp. and Export-Import Bank of China.

Earlier on Tuesday, China State Construction slammed Baha Mar Ltd., saying that it was the developer’s own missteps that resulted in its bankruptcy filing last week.

“We look forward to engaging in substantive discussions with the parties to try and reach a consensual resolution that will allow us to move forward, and acknowledge the government's constructive role in those conversations,” Baha Mar said.

Additionally, the Bahamas Tribune reported Tuesday that Bahamas Prime Minister Perry Christie would personally mediate discussions over the weekend between the developer, primary lender and general contractor in order to reach an agreement that will push the $3.5 billion project forward.

Baha Mar Ltd. last week sued China State Construction. Baha Mar CEO Sarkis Izmirlian said the contractor had made guarantees that the project would open in November 2014 and then in late March 2015, but neither deadline was met.

The developer also said that before filing for Chapter 11 protection, it had unsuccessfully sought additional funding from its primary lender, Export-Import Bank of China, in order to help finish the project.

Baha Mar is slated to include four new hotels on Nassau’s Cable Beach totaling more than 2,200 rooms as well as upgrades to an existing 694-room hotel.

Source: Travel Weekly