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Chapter 11 bid refused: Baha Mar application denied, Govt ‘vindicated’ by ruling

Sean Moree, front right, counsel for China Construction America Bahamas Ltd, at court yesterday. Photo: Tim Clarke/Tribune Staff

Sean Moree, front right, counsel for China Construction America Bahamas Ltd, at court yesterday. Photo: Tim Clarke/Tribune Staff

As of Thursday, July 23, 2015

By LAMECH JOHNSON

Tribune Staff Reporter

ljohnson@tribunemedia.net

BAHA Mar’s ongoing Chapter 11 bankruptcy proceedings in the United States will not be recognised in The Bahamas, a Supreme Court judge ruled on Wednesday morning.

Justice Ian Winder, who had required time to consider his decision after a six-hour hearing on Monday, took only a minute to also dismiss the motion by the Cable Beach resort's CEO, Sarkis Izmirlian, to get an approved extension for its debtor-in-possession (DIP) financing approval by the Delaware court to take effect.

The judge said he would release his written ruling on the matter within two weeks. Justice Winder is also hearing the government’s winding up petition against Baha Mar, which was filed last week, on July 31.

Baha Mar said it was “disappointed” by the Chapter 11 ruling. "We respect Justice Winder’s ruling and look forward to understanding his reasoning, but we are nonetheless disappointed by the result,” a statement from the resort said. "We do not believe today’s ruling, for which the Government strenuously argued, assures the necessary protection of the assets of Baha Mar, and we do not believe that it is best for the over 2,500 current employees of Baha Mar.

"We note that the stay granted by the US Bankruptcy Court remains in effect, and takes on increased importance in light of this ruling, as all parties must still address that prohibition on the exercise of remedies. Nonetheless, we are continuing to do everything we can through direct discussions with the relevant constituencies and stakeholders to ensure the survival of Baha Mar. “

The government said it welcomed the decision, a statement from Bahamas Information Services saying that it has been “vindicated”.

"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 release, issued by Deputy Director Elcott Coleby, read.

"Our objectives continue to be the prompt completion and successful opening of the Baha Mar project. We are confident today’s decision will encourage all parties to focus on these goals. It is a matter of the greatest national importance for the resort to open as soon as possible, under private ownership and operation.”

Baha Mar and its affiliated companies filed for bankruptcy in a Delaware court on June 29, blaming the resort’s contractor, China State Construction America (CCA), for the construction delays that caused it to miss previous opening deadlines.

The resort also took legal action the following day against CCA’s parent company, China State Construction Engineering Company, in England’s High Court of Justice.

Full story and analysis in tomorrow’s Tribune

Comments

lkalikl 9 years, 4 months ago

A very sad day for the Bahamas. The government and the people who elected them should be ashamed of themselves and the legacy of this decision will live on.

themessenger 9 years, 4 months ago

They say a picture paints a thousand words,one look at the headline picture tells us who wins. Nothing for Izmerlian but death by a thousand cuts.

Bahamian_in_London 9 years, 4 months ago

Well, that's it. The Chinese no longer have any need to negotiate. Without Chapter 11 protection and as the only secured creditor, China ExIm will own everything in a liquidation.

The Bahamian Government has effectively kicked out Sarkis and his $900m and given Baha Mar to the Chinese.

The_Oracle 9 years, 4 months ago

They can only destroy. People, their vision, the systems of Justice and society. They have just graduated to a larger scale.

asiseeit 9 years, 4 months ago

The international community is not stupid. They will see this for what it is, the Bahamas government puppet (our court system) doing their bidding. Any fool that says our court system is independent can look at the many instances where government has influenced the judicial process. A certain numbers mans case just recently reeks of political direction. These corrupt politicians think they are fooling everyone when in reality they are only fooling themselves. FDI is a thing of the past unless it comes from China. Also how come it was fine for Atlantis to go into bankruptcy in Delaware but not Baha Mar? What is the big difference, the government has been directed by our new masters!

JessBlaze 9 years, 4 months ago

Nice to see a fellow Bahamian thats not sleeping . I knew wats up for a lil while now . Atleast Obama smart with it everything moving smoothly These Mf'ers I just cant see how people still lost about this shit. #NWO

island_boy 9 years, 4 months ago

Here's some trivia for you... Guess where Ian Winder worked before he was appointed a Supreme Court Justice? Hint: D_V_S & Co. Just fill in the blanks.

ThisIsOurs 9 years, 4 months ago

Justice Winder was at Davis & Co., because he was qualified to be there, he also got a position to train a cadre of lawyers at the law school because he was qualified to teach the law. He was appointed to the a Supreme Court because he was qualified.

Stapedius 9 years, 4 months ago

Exactly. Bahamians are so trapped by politics that they view everything through a political lens. Ok fine you don't trust the executive branch. Now we say the whole judiciary is corrupt, then onto the police and so on and so forth. But these aren't some aliens in our midst who hold these positions. Its you and me, our family members etc. So are we content in saying we are all corrupt? It's just so stupid.

TheMadHatter 9 years, 4 months ago

You must be careful. There is a phrase in our Constitution which forbids making any disparaging remarks against the integrity of the Courts. Several lawyers have been prosecuted and/or made to apologize even in recent years. Jail time would not be out of the question.

asiseeit 9 years, 4 months ago

This country is but a pawn in a much larger geopolitical game. China wants to be on Americas doorstep and the Bahamas is that chess piece. China does not give a steamed dumpling about the people of the Bahamas or how this affects us. Our corrupt, sold out leaders do not care for the Bahamian people either, cash is their king. Good luck Bahamas, you are going to need it in the coming years!

RealDeal 9 years, 4 months ago

http://www.ringoffireradio.com/2015/07/…

Interesting, especially since the Chinese economy is headed for disaster. But all is well as long as Christie gets his pockets filled.

TheMadHatter 9 years, 4 months ago

It is not headed for disaster. It has a slight decrease in the growth rate - but their growth rate is still almost double that of the U.S. even with the "slow down". This is just "feel good" nonsense spewed by some people to make the public think there is hope for the future and so they will keep having babies to grow up and slave in the salt mines.

Honestman 9 years, 4 months ago

This is going to get ugly. Izzie will fight this all the way and will take the government down with him if they and China try to force him out. Big losers in all of this: We the people.

Zags 9 years, 4 months ago

It is truly a sad day for The Bahamas.

Our country is now officially a third world joke. We should be afraid.

Islandgirl 9 years, 4 months ago

Been afraid since the day this crew assumed control of this country in 2012. Appeal, appeal, appeal. Perry Christie and Crew, your EGO is taking the country down. Country FIRST, IDIOT, not your damn hurt feelings!!!

TheMadHatter 9 years, 4 months ago

Well you know the people had no choice in voting out the FNM except to put the PLP in power - because you know they said the DNA did not have any experience. Well, my toejam shoe has enough experience to do a better job than this.

So next election will the people finally vote for the DNA? Or will they just start ordering Vaseline to come on the boat by the case?

TheMadHatter

Wideawake 9 years, 4 months ago

Zags, The Bahamas has never quite graduated from so-called Third World status. Unfortunately there are two sides to this ; first how we "Fellow Bahamians" perceive ourselves and secondly how we are perceived, individually, and collectively by the outside world, most especially by the peoples and governments of the so-called First World.

As a Nation we probably have equal measures of bursting National Pride and low self esteem, but when our "front men and women" in Government act in a childish and xenophobic manner, we groan, say WTF and our pride in our country evaporates. That's how I feel now!

As far as First World peoples and Governments are concerned they probably chuckle, and say "guess what these dumb asses in The Bahamas have done now,," confirming THEIR opinion of us as being REALLY Third World!!

Wideawake 9 years, 4 months ago

Zags, The Bahamas never quite made it out of the so-called Third World.

Wideawake 9 years, 4 months ago

Always has been a Third World country; never could seem to graduate,

Wideawake 9 years, 4 months ago

Zags, The Bahamas has always been a Third World country; we can never quite make it to the First World!,

jackbnimble 9 years, 4 months ago

Sick. This country is going to hell First damned Class!

lucaya 9 years, 4 months ago

That's a dumb staement,think all Bahamians are unethical,thieves,you mussy crazy!

Sickened 9 years, 4 months ago

Where do we go to hand in our Bahamian passports? I am ashamed to be the holder of one now.

The silver lining in this is that the corruption within the PLP will most likely come out. The AG will certainly not investigate any claims of corruption but the U.S. and Britain surely will. The PLP are digging their own grave and the grave is deep and wide.

Cobalt 9 years, 4 months ago

I'm loving it!!! This serves the Bahamian people well!!! We are reaping exactly what we have sown!!! Das good!!!!! Dis exactly what y'all fools get fa votin PLP!!!! Nah all a yinna broke, jobless, an gatta pay VAT!!! Lemmie see ya wave ya gold an blue flag nah!!! Y'all Bahamian people too damn stupid!!!

TheMadHatter 9 years, 4 months ago

Well I can agree with you, unless you are suggesting that they should have voted FNM. In that case, you are just the other side of the same foolish coin.

Cobalt 9 years, 4 months ago

That's exactly what I'm suggesting.

Look...... I'm no big fan of HAI and the FNM party either. But the man knows how to conduct business, get things done, and establish infrastructure. If the FNM were in power, the airport would be complete, as well as other major projects such as Baha Mar. The FNM brought in Sun International which developed and completed the mega resort Atlantis, and amidst major controversy, also completed an island-wide road works project! They are NOT a perfect government........ but they know how to get major projects done!! The FNM's problem is....... they seem to blatantly neglect the IMMEDIATE needs of the people! In other words, "people can't eat new roads or new buildings."

HAI is a stubborn, bull headed, ego maniac who only seemed fixated on his ideas! But the man knows how to get things done! If the FNM were in power Baha Mar would have been completed and thousands of Bahamians would have had jobs. Furthermore, (unlike PGC) HAI is respected amongst global leaders!

Again...... HAI gets on my nerves sometimes too!! But he is a much better leader than Perry! Voting for Perry and the PLP has caused our country to regress and recede! We have taken ten steps backwards under the PLP!! We should have bitten the bullet under HAI until we established another party willing and able to lead us into the 21st century. And as you can tell.... it certainly ain't the PLP.

John 9 years, 4 months ago

Ok so let's say we accept the ruling that the Judge denied the chapter 11 bankruptcy recognition because he wanted the matter to remain in the Bahamas jurisdiction and under the administration of Bahamian courts. So what is the purpose of denying Izmirilian any protection from his creditors and a chance to reorganize his assets? From what we know the project fell into financial problems because the China Construction Company was more than six months behind on completing its work and the China bank refused to advance additional funds. This ruling tends to force Izmirilian out and gives little opportunity for him to recoup any of the funds he has invested in Bah Mar.

TalRussell 9 years, 4 months ago

http://tribune242.com/users/photos/2015…

jusscool 9 years, 4 months ago

Ubelievable

Well_mudda_take_sic 9 years, 4 months ago

Can you imagine any Judge worth his oats giving such a significant ruling only verbally.....and then having the audacity to say in this modern age of word processing (with cut and paste features for case precedents) that it will take at least 2 weeks for the details behind the ruling to be typed up and made available to the public?!

JessBlaze 9 years, 4 months ago

Its all apart of this game their playing. They think we dumb !

killemwitdakno 9 years, 4 months ago

Giving themselves room to reverse since the precaution is arm flexing because their ego was insulted.

ThisIsOurs 9 years, 4 months ago

He was asked to give his ruling by Bahamar lawyers I believe. I'm thinking his indication was he would give his rulings and his reasonings in two weeks. They wanted to know immediately and he obliged them

John 9 years, 4 months ago

While a ten percent ($300 million dollars) cost overrun and a late finish (2-3 months) would not be considered unusual for a project of this magnitude, if Bah Mar can prove these delays were intentional and contributed to the additional costs then they will get relief. If the parties involved goes ahead and disposes of Bah Mar knowing that this is the issue then that can spell more trouble down the road.

MonkeeDoo 9 years, 4 months ago

It is indeed a sad and sorry day for all Bahamians because, if the courts are not independent, and it seems more and more not, then "There, but for the Grace of God go I".

MonkeeDoo 9 years, 4 months ago

Is Ian Winder a relative of Raymond Winder ? Anybody know ?

island_boy 9 years, 4 months ago

dunno but here's some trivia for you... Guess where Ian Winder worked before he was appointed a Supreme Court Justice? Hint: fill in the blanks: D_V_S & Co.

ThisIsOurs 9 years, 4 months ago

He left Davis &Co. years ago. As far as I know everyone who appears before him has only good things to say. I don't like the outcome, but that doesn't mar my opinion of him. He could chose for Bahamar or for the Exim Bank and he made a decision.

Reality_Check 9 years, 4 months ago

Baha Mar has suffered great financial harm as a result of a government that we elected; accordingly, we (the Bahamian people) should be prepared to ante up for the mega-millions of dollars in losses we have wrongfully caused the principal developer. Baha Mar will now simultaneously pursue the only two courses of action it is left with in an effort to mitigate its losses; losses that we (the Bahamian voters) have caused it. Baha Mar will file an appeal to Winder's ruling which will slowly make its way to the Privy Council via an upholding of the ruling by our Appeals Court under the sway of Christie & Maynard-Gibson. At the same time Baha Mar will commence a suit against the Bahamian government for damages which will also slowly work its way to the Privy Council. Meanwhile, just about every foreigner will turn their back on the Bahamas, and rightfully so. The U.S. government can also be expected to come down on us like a ton of bricks, which will start with a significant downgrading of our country's credit rating by the U.S. controlled rating agencies.

TalRussell 9 years, 4 months ago

Comrade Reality Check, it's obvious either you don't give a good damn, or you have never seen the Izmirlian "Dock" extending far out into Atlantic Ocean. cuz if you had there would have been hot flashes extravagantness - done be's blinding your "reality" eyes. Some claiming if you stands at end "dock" you can sees Cuba on a clear day.

TheMadHatter 9 years, 4 months ago

Tal - that is the PLP mentality - worrying about other people "dock" instead of trying to learn how to get our own. It does no good for everybody to be eating rice. Time to Bahamians to get a piece of filet-mignon.

Ya'll keep worrying about the man helicopter and such things while ya light get turn off.

TalRussell 9 years, 4 months ago

Comrades, I agree the time clock seems be running excessively long considering Judge Rhodes who handled Detroit's bankruptcy, the largest of its kind in history involving a US municipality, followed his verbal ruling with his 140-page written. And, unlike we Bahamaland court system, on any court day, you can actually spot court stenographers on da job, typing away.

Reality_Check 9 years, 4 months ago

You and many others like you deserve what's about to come your way my friend; hope you've stocked up on toilet paper, soap, tooth paste, candles, matches, and fresh water! The Greeks will at least be getting basic financial aid from the rest of Europe. But as for us, oh well..good luck begging from the Chinese.

TalRussell 9 years, 4 months ago

So, Comrade Reality Check, are you going comment on your red party's leader Minnis's supporting the PM's court action against Baha Mar, or your party's deputy leader Peter, who says - hell no? Now, poor Minnis has deal with two Loretta's.

Well_mudda_take_sic 9 years, 4 months ago

You sound frightened. You should be.

TalRussell 9 years, 4 months ago

My Dear Comrade, that's exactly what is wrong this picture by those attempting to use fear to prop up izmairlian's doomed Paradise on Cable Beach.

MonkeeDoo 9 years, 4 months ago

Reality-Check: Bran McCartney and the DNA elected these guys. I know where I put my X.

marrcus 9 years, 4 months ago

Had DNA votes been tabulated in the FNM column (2012 election results available online) the results would have been 24-14 FNM-PLP Bran is a spoiler, the 2 need to join ranks again or the FNM needs to fold under Brans wing. Unless your allegiance is with the PLP, then all is fine and dandy. I pray that Perry gets this right. I will praise him if he does, but heaven help us all if he gets this wrong.

TheMadHatter 9 years, 4 months ago

WRONG WRONG WRONG. The Bahamian people elected the whole circus of fools on both sides by NOT voting in sufficient numbers for the DNA. They will soon have that choice again. Vote DNA - or vote for more of the same. People voted against the FNM for a reason - it's just too sad that many chose to vote against the FNM by marking next to the PLP. Well they will soon have the chance again to do right. DNA soon, or da boat ga sink.

marrcus 9 years, 4 months ago

As long as there are 3 parties. PLP will remain in power. Simple fact. If I was PC, I would be contributing (modestly) to Brans campaign. On the other hand, If DNA could get Loretta and a handful of FNM and a couple of PLP's well then we got something.

TheMadHatter 9 years, 4 months ago

Well if 60% of voters don't vote DNA next election, then we deserve to turn into Haiti. Simply a choice.

We can choose to fail. Let them go ahead and vote PLP and FNM. Whatever.

marrcus 9 years, 4 months ago

2 weeks for a written ruling? 2 years of appeals? cable beach will be a ghost town, all while the US (biggest tourist market) is thriving and spending again. What a "banana republic." Cuba is far more compelling today than it was yesterday.

Reality_Check 9 years, 4 months ago

Picture that monstrosity of a concrete structure (unfinished hotel) sitting out at Coral Harbour. What foreign investor in their right mind would come to the rescue of the Baha Mar development knowing that our corrupt Bahamian government and the Chinese are snuggly in bed together and therefore might at any moment pull the same illegal (unconstitutional) nationalization stunt on them. By default, only the Chinese and our corrupt government can complete, own and operate Baha Mar now, and we all know what that means: Bahamians need not apply! For those of you staying...start brushing up on your Mandarin.

Stapedius 9 years, 4 months ago

Bahamians are a strange breed. Why is the court considered kangaroo? So because the decision has not gone in the direction of a developer the judge and the court is corrupt? Thats BS if I might say so. We tend to think other courts and justice systems around the world are so transparent and sweaky clean. I may not agree with the judge's decision but I respect what belongs to us. I'm sorry, but we for some reason have this dim view of everything Bahamian. To hell with that and to hell with those who think this way. Be critical of our government yes, but this persistent attitude by many Bahamians that we are somehow inferior in every way shape or form is sickening. I don't know the judge or any of the players involved in the dealings of this mess. But I would hope that a judge born and raised here has just as much integrity and skill as his counterparts around the world. Just sick of hearing this anti-Bahamian shit all the time.

The irony is that the same people who call the court kangaroo want the privy counsel removed as our high court for the purpose of carrying out the death penalty. So what yinna want?

Reality_Check 9 years, 4 months ago

I want you to understand that wrong or bad things done anywhere else or by anyone else does not excuse wrong or bad things done by us here at home. It's the "they done it so I can do it" mindset that has destroyed our country....we just find it easier to gravitate towards being the "worse" that we can be rather than strive to be the "best" we can be. That mindset comes with a dear price though, as you and I shall soon see!

EasternGate 9 years, 4 months ago

You are so right kalik. Old PLPs never die, they just smell that way

jlcandu 9 years, 4 months ago

Hmmm ... No comment from Birdie. I guess the shame is too much to handle, eh Birdie??

Stapedius 9 years, 4 months ago

That's nonsense and you totally miss the point. No one should excuse wrong wherever it occurs. The point is who says the the judge is wrong? The point is people had it as a given that the judge would rule in favour of the developer. We have little faith or trust in our own is my point. The judge may have had a very good reason to deny the application. But instead of us saying let's wait on the ruling we jump all over it like bi#%$ in heat say oh government corruption, court corruption. Total nonsense.

GrassRoot 9 years, 4 months ago

You have a Point and still I have to ask you on what planet you live. I wonder whether Bahamas law protects the employed person local contractor over the interests of CCA. It is also interesting to see whether the winding up petition can even be heard until the court has issued the written ruling

In_search_of_truth 9 years, 4 months ago

Ok, let us just process this a bit here, we all knew and expected this would be the course of action taken, and really this was sort of a "Catch 22" situation for our Supreme Court. It all depended on who they decided to piss off in the end, if the Chapter 11 ruling was upheld, then CEXIMB and CCA and hence the Chinese would have been angered, if they refused as is now, FDI and the U.S. are now angered along with the rest of the international tourist world being cautious, neither one of these decisions for or against would have been swallowed well.

I will say this though, it would have looked even worse to surrender what little sovereignty we have left as a nation to an American court system, even though, in my own humble opinion, I think it would have been better to do so, in order to quash the atmosphere of corruption because we would have been assured that the Delaware Court appointed and approved overseers would be at least on paper totally un-bias with one focus to get the job done.

But we know the saying, if someone wins, then obviously someone else loses. Many of us here feel like the Bahamian people have lost today, and it may be difficult to do at this point, but we just need to hope and pray the entire matter gets resolved soon so that Baha Mar can be opened and the economy of the Bahamian people can begin to benefit from it.

Still, will we ever know the depth of the rabbit hole of under-handness, corruption, and secret deals go? Nope! Also we know Izzie will take some sort of action legally in light of this, because I would not take kindly to investing 850 - 900 Mil only to have my efforts cut from under me, nobody just walks away from that kind of investment. I take it hard in this VAT day in age to not feel some type of way when invest a meager 200 dollars in something and it don't pan out, judge millions. The sad truth is, it will be us as Bahamians who will feel all the blows, effects and casualties of this war, as you can sense this is only Round 1 in this Heavyweight fight of about 20 Rounds GEESH!!

concernedcitizen 9 years, 4 months ago

With our price structure and Cuba opening ,we better hope the Chinese money don,t stop .We can,t even provide reliable power even though are electricity rates are one of the highest ,by far , in the region ..

Well_mudda_take_sic 9 years, 4 months ago

Well, let's just take a brief moment to consider the background of the Judge (Justice Ian Winder) who was assigned this very weighty complex case of enormous national import. The Supreme Court's own website, not yet updated for the departure of Michael Barnett as Chief Justice, shows that Justice Winder is at the bottom of the totem pole in terms of seniority (see http://www.supremecourt.org.bs/faciliti…). He was appointed an Acting Justice in July 2014 and prior to that was a partner of Brave Davis in Davis & Co. Other background info available on the internet about Justice Winder is as follows: "Ian 'Ricardo' Winder was born on the Island of New Providence, Bahamas. He was educated at Saint Johns College, The College of the Bahamas in Nassau and the University of the West Indies Cave Hill Barbados. He was called to the Bahamas Bar on 12th May 1995. Mr. Winder concluded articled of clerkship with Mr. Bernard S.A. Turner Esq. in office of the Attorney General, Nassau. Mr. Winder is also a former Crown Counsel in the Attorney General Office and as acted as Deputy Registrar General of the Commonwealth of The Bahamas. Mr. Winder practices principally in the areas of civil litigation and has responsibility for the operations of the Freeport office. Mr. Winder practices in all Courts of the Commonwealth and has appeared in the Privy Council in London. Mr. Winder is the serving Chairman of the Road Traffic Authority Board and a member of the adjunct faculty of the College of the Bahamas where he lectures in Business Law. Mr. Winder also has memberships in the Bahamas Bar Association, The International Bar Association and The Bahamas Chess Federation." Seems Christie, Maynard-Gibson and Gomez found the right guy for the job. Can't wait to read his ruling and no doubt he will need considerable help (from you know who) in fitting that square peg into a round hole.

Reality_Check 9 years, 4 months ago

Unbelievable! Does anyone know whether Maynard-Gibson was Attorney-General at anytime Winder worked in the AG's Office? Keep in mind Maynard-Gibson has had more than one stint as AG because Christie likes for her to be in charge of the AG's Office whenever he is PM, in the same way he always likes to be in charge of the public purse as Minister of Finance.

killemwitdakno 9 years, 4 months ago

Securing their sponsors the next election. They know Sarkis hates their guts by now.

killemwitdakno 9 years, 4 months ago

The world knows that our government doesn't know what chapter 11 protection is. Despite a previous main investor Trump having done it numerous times, and Baha Mar's 2008 partner Ceasar's having done it this year.

http://www.wsj.com/articles/bahamas-jud…

killemwitdakno 9 years, 4 months ago

Is this why the BEC bidding took so long? Part of the deal for the Chinese to take it on was that they needed the rest of Baha Mar I bet.

killemwitdakno 9 years, 4 months ago

So how did all the Chinese ownership work out for Freeport, where is their Singapore again?

Ugh why are repeating this..

MonkeeDoo 9 years, 4 months ago

killemwitdakno: I think the next election will be long over before this mess gets sorted out.

Well_mudda_take_sic 9 years, 4 months ago

Justice Winder fatally erred in his decision in as much as Baha Mar has never been technically insolvent under the insolvency laws of the Bahamas. As publicly admitted by the Christie-led PLP government, the concessions alone granted to the development have considerable value, upwards of the equivalent of US$1.2 billion. This is in addition to the circa $3.2 - $3.5 billion that has already been expended to bring the project to its publicly announced 97% completion state. A consolidated statement of financial position of the Baha Mar development prepared on a fair value basis immediately prior to the Bahamian government's announcement that it would petition for the liquidation of the project, would undoubtedly show that total assets exceeded total liabilities, in which case Baha Mar was technically solvent notwithstanding its liquidity problems. Much of this net asset value was immediately destroyed though upon the liquidation announcement by our government; and most of the destroyed value related to the Izmirlian family's equity stake in the project which has, for all intents and purposes, been wrongfully nationalized. The definition of bankruptcy under a Title 11 filing in Delaware is not the same as the definition of insolvency under the laws of the Bahamas. Therein lies the injustice of the petition for liquidation filed by our government. The Title 11 bankruptcy proceedings would have allowed for the liquidity problems to have been worked through by Baha Mar in an equitable way for all stakeholders; the same is not true of a liquidation proceeding in the Bahamas.

asiseeit 9 years, 4 months ago

Any person who believes our judiciary branch is independent of our executive branch is fooling themselves. Who appoints the judiciary? Just the fact that the numbers man was given an annulment is very telling in itself. Bahamians better start to understand the dire ramifications of what is happening. This country lives and die's by FOREIGN DIRECT INVESTMENT. Tourism is drying up and as soon as Cuba opens we will be the ugly stepsister nobody wants to dance with. So with FDI done, tourism dollars going to Cuba, where will our SPENDABLE dollars come from? Remember we import well over 3 billion dollars worth of AMERICAN goods a year. What American firm will accept B dollars? I hope the politicians know something the rest of us do not, that's for sure.

lucaya 9 years, 4 months ago

Beside this issue,some of you who would suggest that we as whole(Bahamians) are corrupt and unethical,a banana republic,go find yinna tormented own hell,and shut up,how dare ya'll? Yinna have to be sick and depraved,xenophobic,and ill in the brain.I/we decent Bahamians never ever agreed that something in this whole saga(all involved) stink as fish,so some of yinna mean spirited, rabies looking rats, should come out to say?Chile please...

Well_mudda_take_sic 9 years, 4 months ago

Try taking a strong laxative to help ease all of that tension in your belly.

MonkeeDoo 9 years, 4 months ago

I agree - lucaya really needs a physic or something. Full of shit for sure.

DEDDIE 9 years, 4 months ago

I was curious to see how the Atlantis takeover was handle and to my surprise it was handle in Delaware also. Apparently most bankruptcy cases in the United States are file in Delaware Chancery Court. This court has been dealing with such cases from 1791 and it is their core competency. The then FNM government approach was more hand-off even though they had a great relationship was Sol Kersner.

John 9 years, 4 months ago

IN THE MAIN TIME some 2,500 Bahamians stand to become unemployed in a matter of days, Several business have inventory sitting on the docks and elsewhere some since December 2014 in anticipation of Bah Mar's opening, Restaurants and stores have been outfitted and decorated, Bahamian construction workers now sit idle, the persons who left jobs where they had tenure to join Bah Mar are slapping themselves and wishing they could slap everyone who contributed to this debacle, and the Bahamian economy has lost almost a year of economic activity that bah Mar was expected to generate. The project should have been done in phases like Atlantis. Then there would have been an increasing revenue stream.

arussell 9 years, 4 months ago

Lord all I gone say is we need papa!!!

John 9 years, 4 months ago

WHILE THE BAH MAR SAGA is used as a distraction, your government, in the person of Shane Gibson, is trying to sneak into law a FORTY PERCENT INCREASE in the minimum wage. On August 15 the minimum wage will shoot up from $150.00 a week to $210.00 a week. This will kill many labor intensive businesses as they will have to increase proportionately all their workers in line with the 40% increase the minimum wagers will be getting and put many others into the red. On the supply side many workers will now find themselves 'unemployable' as employers will be seeking the brightest and more productive workers. A minimum wage of $175.00 would have been more suited to the current economic climate even if an additional increase was given in two - three years. A minimum wage is set for persons entering the job market with the expectation that they will increase their skills and experience. With the wage now being set at $210.00 workers no longer will have the motivation to improve, but push for a further increase in a few years.

marrcus 9 years, 4 months ago

1 out of 3 workers in this pay range will lose their jobs. Used to be ya got 3 for $450, now ya get 2 for $420. I agree with the incremental approach.

Well_mudda_take_sic 9 years, 4 months ago

China wants a higher minimum wage for the purpose of inducing a greater number of lower cost Chinese workers to come to the Bahamas to work in the Chinese owned hotels in the Cable Beach area (Baha Mar) and in downtown Nassau (the Hilton).

Sickened 9 years, 4 months ago

I guess the prices at Super Value will now be going up even more in order to cover this drastic increase in labour costs. If our inflation rate isn't close to 10% this year I will be very surprised.

GrassRoot 9 years, 4 months ago

stop whining. when you work more you have less time to spend your money (well unless you fathered 10 children out of wedlock)

sheeprunner12 9 years, 4 months ago

How many workers in this country who are registered with NIB make less than $210.00 a week now................... 10-15% ????????????????

Or is there a large underground group of workers in our country who may benefit from this minimum wage hike?????? What about contract workers .... and hourly rate/part-time workers????? ............ or non-unionized, private sector workers in the primary/service sectors??????

TheMadHatter 9 years, 4 months ago

The underground workers won't benefit - that's why they're underground. They take what they can get. No NIB and no NHI. Day-workers. Work a day and get $40 and thank the Lord for it. The Church say ya gats plenty mouth to feed.

Wideawake 9 years, 4 months ago

Too much too soon, except as a means to win a few thousand votes in 2017

SP 9 years, 4 months ago

Regardless Of It All, Just Sick And Tired Of Being Sick And Tired Of The PLP And FNM

John 9 years, 4 months ago

@sheeprunner : at least 30% of the workers in this country are around or at minimum wage. But you must also understand that when you increase the bottom worker, you must also increase those immediately above them. So if you increase a new worker form $150.00 to $210.00 you must also increase the worker who was at $210.00 by the same percentage which would now put his wage at $295.00. You should also remember that the national insurance for these workers will also increase causing another 6 percent cost increase on the employer. Lets say a company has 50 workers at $150 that they was now move to $210.0. That is a $3,000 (THREE THOUSAND DOLLAR) increase in labor costs PER WEEK. Now lets say this same company has 10 workers at $210 that it must now move to $294.00 per week. That is an additional $840.00 the company must find each week for a total increase of $3,840.00. So where does these funds come from? Lets assume that the company wants to keep labor costs as 20% of sales. This means that the company must now increase its sales by $19,200 (NINETEEN THOUSAND TWO HUNDRED DOLLARS) a week or increase its prices by 20% or a combination of both. Which company in the Bahamas you know of can increase its sales by $19,000.00 a week.... overnight? It is not a matter of NOT being in favor of a minimum wage increase but in all his experience in trade unions and labor, SHANE GIBSON, knows he has never negotiated and received a FOURTY PERCENT PAY INCREASE FOR WORKERS! Then to be so arrogant and cocky and threaten employers, many of whom have been in a struggle since the recession hit in 2008,. But we shall see what we shall see...prepare for a gloomy Christmas! The economy is still hemmoraging from VAT, then you talking about NHI.. in a few months.

Reality_Check 9 years, 4 months ago

The National Insurance Fund has been tapped very heavily by the Christie-led PLP government as a result of all the shenanigans at Bank of The Bahamas involving delinquent unsecured loans and advances made to Christie's political friends and business cronies. Increasing the minimum wage is an effort to replenish the plundered National Insurance Fund so that it can be re-plundered.

themessenger 9 years, 4 months ago

The NIB fund has been tapped very heavily by successive governments for the last 40 years. Give me one instance where any of it has been repaid by either party.

banker 9 years, 4 months ago

Says it all. Cuban embassy opening in Washington.

http://tribune242.com/users/photos/2015…

So long. Goodbye. Farewell.

Well_mudda_take_sic 9 years, 4 months ago

Financially troubled Puerto Rico has a total population of 3.6 million people and national debt of $72 billion, equating to national debt per capita of $20,000. The Bahamas has a total 'legal' population of 300,000 and national debt of $6 billion, equating to national debt per capita of $20,000. The credit rating agencies have already down graded Puerto Rico's debt to junk status. Add to these facts the recent reckless actions of the Christie-led PLP government (Christie, Maynard-Gibson and Gomez in particular) that have destroyed a significant portion of the value of the principal developer's equity stake in the Baha Mar project, thereby causing the entire project to implode, and it becomes easy for all to see what the credit rating agencies have in store for the Bahamas.

sheeprunner12 9 years, 4 months ago

Do you see how many White Knight lawyers are coming out of the wood work to make a killing on these lawsuits????????? ........ that is who will benefit ....... and the PLP crooks

Sickened 9 years, 4 months ago

You're right! It's about time some white Bahamians get a piece of this action.

SP 9 years, 4 months ago

.................... Who Do YOU Trust Most....Crook, Failure Or Jackass? .....................

jus2cents 9 years, 4 months ago

Look at the smug smiles in the Photo above they think they gat it in da Bag! A Judge that takes two weeks to write up a reasoning for his judgment for something so pivotal to the nation is a crime as well! Oh how quickly people forget. The Years moving roads and businesses, so much Hope, we had a dynamic engaging man who ignited people's passion to strive for their personal best, he stuck through it all no matter what, a man with a bright vision a vision that would benefit us ALL & not just the Few.

Baha Mar 97% complete the building is practically finished! The construction errors would have been started to be repaired by now if Government hadn't got involved in someone else's battle, each day that passes money is lost, reputation is tarnished & outlook for the nation dwindles.

Government's interference was all about their ego's, the interruption of the US Chap 11 and their excuse of 'Protecting our Sovereignty' is a joke, (whilst they take the side with China!) Their excuse just shows more slackness bad management and lack of foresight, they should already have laws in place not wait for something like this to happen. Almost like they wanted and encouraged this debacle to happen. And so now because of the Gov's disruption, China will more likely be running the place in a few years, the Chinese have vision as well, they see the other resources they can exploit. Oil, Fishing, Aragonite, Agriculture, Global Banking, Import Export, Shipping etc.

Sovereignty Phooey! The numbers boys, preachers and politicians will be ok, the rest, who knows? Welcome to the 1980's except now we have VAT and the teetering BSD?

TheMadHatter 9 years, 4 months ago

Man - here in da Bahamas we is have da sweet&sour chicken with only the sour part :-)

TheMadHatter

GrassRoot 9 years, 4 months ago

yea baby. you nailed it. we ran out of the sweet. sweet as in sweet life. all we have is sour, as in sour reality.

BaronInvest 9 years, 4 months ago

Wow, that's the way to destroy a brand and damage your own countries economy. As a foreigner i better keep my funds out of this country - that's the message this delivers for me.

Well_mudda_take_sic 9 years, 4 months ago

"Bank of Nova Scotia, Canada’s No.3 bank better known as Scotiabank, boosted its credit loss provisions in the fourth quarter of 2014 largely due to loan losses tied to its Caribbean hospitality portfolio.

One of Scotiabank’s biggest credit issues in the region has been a US$233 million syndicated loan the bank made to help assemble the land for the US$3.5 billion Baha Mar mega resort and casino project in the Bahamas. The developer of the resort, which is still to open, filed for bankruptcy in the United States last Monday.

Scotiabank did not immediately return messages last week seeking an update on its status with the Bahamas project. It got a stake in the project through a debt-for-equity swap as part of a new financing arrangement with China’s Export-Import Bank, which in 2010 rescued the project with US$2.45 billion financing."

Daily Express Trinidad - July 7, 2015

Reality_Check 9 years, 4 months ago

In other words, not only did the Christie-led PLP government (Christie, Maynard-Gibson, Gomez, Davis et al) screw the Irzmirlian family, but they screwed Scotiabank too! This at a time when CIBC wants to sell its First Caribbean operations in our region but can't find a buyer, and RBC is seriously contemplating exiting the Bahamas as it recently did in Jamaica. It seems the Canadian banks, whose operations are highly regulated by global regulators, are finding it unprofitable and damaging to their brands to operate in our region where the failed policies of corrupt politicians have: (1) destroyed the middle-class and caused moral hazard situations; (2) supported organised crime and racketeering mobsters that have governments in their pockets; and (3) resulted in a largely unskilled and uneducated work force, especially at the lower pay grade levels.

sheeprunner12 9 years, 4 months ago

The business sector has a responsibility to help train the workforce .... high school graduates are not automatically ready for the workforce ... that is why we need more on-the-job programmes for high school students How much is this being done beyond the 400 lucky students in Technical Cadet Corps in Nassau and Freeport?????? ...... mostly private school students

Reality_Check 9 years, 4 months ago

The business sector can only train them if they can read, write and do basic arithmetic, and are not unruly. That unfortunately eliminates about 80-90% of our 'graduating' students today; the remaining 10-20% all want to be doctors, lawyers or accountants.

sheeprunner12 9 years, 4 months ago

Reality .......... do not degrade our children like that ........ this national grade average nonsense has destroyed the credibility of our public school teachers and schools .......... even though there are 10-20 other major factors that affect student performance ........... a country that depends on private schools to produce its top class students has a failed educational system ...... you have bought into the social elitist lie like what is going on in the USA

Well_mudda_take_sic 9 years, 4 months ago

You must accept though that the incompetent corrupt politicians responsible for the failed policies that have short changed our public education system in a most serious way are the very same ones who send their own children to the best of the private schools both here and abroad.

MonkeeDoo 9 years, 4 months ago

When, not if, this country collapses into oblivion, the same PLP's that you cant find now will eat Christie and his cohorts up. They ( PLP Supporters ) are largely at the bottom of the food chain and will be the first to feel the pain and suffering. When this country cannot obtain enough hard currency to buy grits and flour, we will either have to make it, or do without it. It will be difficult to sell our junk bonds to anyone, even at a significantly higher interest rate. We will be worse than Greece which has the safety net of the EU. Who do people think we have to rely on, in our INDEPENDENT SOVEREIGN NATION. We got us, and that is it.

Well_mudda_take_sic 9 years, 4 months ago

Perhaps even more importantly though, our incompetent corrupt politicians really don't understand and appreciate the racist underpinnings of Chinese culture as exemplified by the devious ways in which China has bribed the more senior government officials in many African nations in order to exploit the natural resources of those nations for the benefit of China. Unfortunately, the way in which many racist black Bahamians view white Bahamians or white foreigners is exactly the same way in which many Chinese from mainland China view black Bahamians or other Bahamians who are less than white. As racist an observation as this may sound, it is sadly the real world we live in and must appropriately react to in order to counter influences that run contrary to our own national self-interest as Bahamians. And believe me, I'm not trying to play "the race card" here....but rather simply acknowledge "it is what it is".

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