The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

TOURISM Minister Obie Wilchcombe downplayed concerns yesterday about whether an ongoing legal dispute could delay Baha Mar’s opening at the end of this year.

His comments come after court documents obtained by Tribune Business revealed that Baha Mar discussed delaying its target December 2014 opening amid its ongoing dispute with Morgans Hotel Management Group, the intended operator for the 300-room “Mondarin at Baha Mar” property.

Speaking to The Tribune yesterday, Mr Wilchcombe said: “(Baha Mar officials) told me they’ll be open December 8th. I have no reason to doubt that they know what they’re talking about. We have to appreciate that what they’re doing is all internal so we don’t know the details of it, but we trust they’ll work it all out.”

According to court documents, the dispute between the management group and Baha Mar relates to the latter’s failure to fulfil certain conditions contained in a July 31, 2011 hotel management agreement with Morgans.

The 20-year agreement for Morgans to provide “direction, management and supervision” of the Mondarin property required that Baha Mar obtain a “non-disturbance agreement” from its financiers within six months of the deal’s signing.

Such an agreement, which Baha Mar had to obtain from the China Export-Import Bank, its multi-billion dollar lender, would have allowed Morgans to continue uninterrupted management of the Mondarin even if the developer defaulted and the Chinese institution had to foreclose.

“Baha Mar failed to obtain a non-disturbance agreement or to inform Morgans Management of its failure to do so within six months of the date of the Hotel Management Agreement,” Morgans alleged.

On April 10, Denise Godreau, Baha Mar’s chief marketing officer, told reporters that Baha Mar is on course to meet its construction completion. She added that Baha Mar will open in full rather than in stages.