BAHA Mar CEO Sarkis Izmirlian on Monday announced that the mega-resort in Cable Beach has voluntarily filed for Chapter 11 bankruptcy in the United States, in order to finish construction and open the property as soon as possible.
The plan was revealed in a statement released by the resort earlier today.
Mr Izmirlian said in part: “I am committed to doing all I realistically can to move Baha Mar forward to be completed and opened successfully. I am confident that, once opened, Baha Mar will be a world-class destination resort that will attract guests from around the world and serve as a key economic sparkplug to the Bahamas. The Chapter 11 process provides the appropriate venue to create a viable financial structure that places Baha Mar’s interests foremost.”
Baha Mar is six months behind its December 2014 opening deadline. It has missed subsequent opening dates in March and May of this year.
In a statement earlier this year, Baha Mar criticised the performance of lead contractor China Construction America, revealing that work at the property had not met the expected “standards of excellence” and was, therefore, not acceptable.
Baha Mar added that it had relied on statements from its construction manager and lead contractor when it had earlier announced a March 27 opening date.
Mr Izmirlian has repeatedly flown to China for discussions about the project.
For weeks, Prime Minister Perry Christie has been locked in talks with the resort’s developer and financier, the China Export-Import Bank. On June 17, Mr Christie told the House of Assembly he had received “encouraging” news about a possible impending resolution to the Baha Mar deadlock.
See Tuesday’s Tribune for more on this story.
Comments
Zakary 9 years, 4 months ago
According to the Nassau Guardian http://www.thenassauguardian.com/news/5…">story;
To help assure that we move down this path efficiently, Baha Mar’s developer, Sarkis Izmirlian, has agreed to arrange the funding for the Debtor-in-Possession (DIP) financing facility. This financing will, among other things, enable Baha Mar to operate and meet its financial obligations in the interim during the Chapter 11 process. Specifically, the total DIP facility is up to $80 million of which up to $30 million will be utilized by Baha Mar over the next 30 days.
realfreethinker 9 years, 4 months ago
Wow so all those " good " news the PM was giving was crap. BANKRUPTCY ?
ThisIsOurs 9 years, 4 months ago
Perry Christie needs to RESIGN TODAY. he has clearly shown over the past week that he is on a one track political marketing campaign and cares NOTHING for doing the actual work to prepare his fellow Bahamians for realities or to lift us out of the hole we are in. He needs to go.
Emac 9 years, 4 months ago
Gatta wait two years fer dat to happen!
TalRussell 9 years, 4 months ago
Rumour has it ALL workers at Baha Mar were tricked earlier today into exiting the premises in mass, after being told only minutes earlier that they ALL had make their exit to allow the premises to be fumigated? Then once off Baha Mar's premises, they were suddenly instructed by email, not to attempt to reenter onto premises.
Where in da hell did all them Chinese nationals workers on work permits disappear to, who were also living onsite at Baha Mar? Also been told they were ALL sent back to China weeks ago, yet the media never noticed their mass exit. How come?
Have members the PLP Cabinet been telling outright lies to the people's of Bahamaland. What did they really know about the dry rot which had already done set in at at Baha Mar, before today's complete shutdown of Baha Mar? Did they knowingly lie? If so, who must resign from both da cabinet and House of Assembly seats?
ThisIsOurs 9 years, 4 months ago
Yep. It's a standard tactic. They don't want employees to damage property
BahamaPundit 9 years, 4 months ago
Well blow me down!!! This is the news we've all been waiting for and now it's finally here. It's been a long trip my fellow Bahamians. Now reality has appeared on our doorstep and all the reports concerning good news have been shown to be the lies they are.From the beginnong, I was concerned by the arrogance of this project -- the self pronounced largest resort in the Caribbean. In retrospect, the errors are very apparent. Most noteably, refusing to open in stages was a major misjudgment. How many times did we read in the press that the Bahamas tourism would not be able to sustain the room glut of two mega resorts. This is truly the Titanic part two. One of my concerns was that the project used the name Bahamar, a name so similar in spelling and pronounciation to Bahamas. Should the project fail, the name and it's failure could easily become tied to and associated with Bahamas. Every search for Bahamas on Google will forever retrieve mention of the failed Bahamar resort in search results.
EnoughIsEnough 9 years, 4 months ago
This is hearbreaking really. Even though most Bahamians did not support the size of the project - no large hotel has ever seemed to be successful in this country - once it was progressing we definitely wanted it to happen. So many friends/family members left career opportunities abroad to come home to Baha Mar, many excellent employees were recruited from Atlantis, Ocean Club and other properties so that Baha Mar would have the best of the best. My heart goes out to my fellow Bahamians who are now between a rock and a hard place. There are no new jobs out there for them.
But what I find disappointing and frustrating is the $20million in unpaid BEC bills, per this excerpt from Bloomberg's story on the bankruptcy filing:
"The company is seeking court approval of as much as $80 million in financing arranged by Izmirlian that will enable Baha Mar to operate during the Chapter 11 process, according to the statement. The company said it plans to use $30 million of that for operations over the next 30 days. Among the largest unsecured creditors listed were CCA Bahamas Ltd., owed $72.6 million in construction costs; Bahamas Electricity Corp., owed $19.5 million; and Yates-Osprey J.V. owed $5.28 million. All are based in Nassau. Bally Technologies of Las Vegas is owed more than $1 million in trade debt, according to the filing."
Our successive govts continue to allow the big players to get away with non-payment of these large bills. We simply cannot afford to run our country this way.
http://www.bloomberg.com/news/articles/…
ThisIsOurs 9 years, 4 months ago
What is most troubling to me is that Bahamar has "the Best of the Best" workers. These are not the people that you want out of the workforce
Zakary 9 years, 4 months ago
But what I find disappointing and frustrating is the $20 million in unpaid BEC bills...
Whenever you hear of unpaid BEC bills for a business, it speaks to its unsustainably, not withstanding the high electricity rates in our country.
BAHA Mar CEO Sarkis Izmirlian on Monday announced that the mega-resort in Cable Beach has voluntarily filed for Chapter 11 bankruptcy in the United States...
Since they filed for chapter 11 it looks like they want to reorganize their finances, and as debtor in possession it seems that there will be many implications especially in regards to workforce.
B_I_D___ 9 years, 4 months ago
POP goes the weasel!!
B_I_D___ 9 years, 4 months ago
THAR she blows!!
TalRussell 9 years, 4 months ago
Comrades let me be first Bahamalander to stick my nose out for bloggers abuse. You've heard it that every cloud has a silver lining, and I think it means that even the worst situations today at Baha Mar could produce some positive and forever lasting aspects. Tell the damn Chinese government they need to go home like they did with their Papa Hubert's 2000 work permits granted Chinese workers that done back in China.
Thanks but no thanks cuz you're out own our Bahamaland. What about all the land signed over Baha Mar, by the FNM government, including the property PM Hubert's cabinet offices stood on?
Also, something else I heard that the PLP Cabinet has granted a license for an all Chinese language radio station.
PM Christie's PLP Cabinet, don't you dare take a half to a billion dollars of taxpayers monies to finish da dry rot Baha Mar Nation. Also, PM no more good Baha Mar Nation news ..... promise? PM Baha Mar Nation, couldn't have awoken this morning to make a snap decision to file for creditor protection - meaning you had have had some previous wind all this?
concernedcitizen 9 years, 4 months ago
Actual Tals Papa Hubert took back land that PGC had giving Baha mar after Izzie borrowed 220 million from RBC/Scotia here to buy out PGC client Ruffin ,,Stiff the Chinese and they are off to Cuba ,,Izzie never had deep enough pockets ,,
jusscool 9 years, 4 months ago
Wow! The Chinese came in here and not only made The Prime Minister but the entire Government look like they can't even run a Tuck Shop. What Game is the Chinese playing? Is the Chinese here to destroy us? Will another Chinese Giant {H.W.} steep in and save what's left? What will the people do who left their jobs? This sounds like a mess peoples. Stay Tune.
GrassRoot 9 years, 4 months ago
strategically a smart move by the developer. This will take out the Chinese and the Government as "partners" in the discussion and will submit the whole process to an orderly process. I bet the Chinese will try to get out as they don't want to deal with US bankruptcy court. Unfortunately that will leave many of the other unsecured creditors (local contractors) with cents on the dollar, if at all. The bankruptcy filing is not the end, it will actually allow the Developer to finish the project without too much interference from Government.
Voltaire 9 years, 4 months ago
I can't wait to hear Perry et al try to spin this one. I hope Sarkis points out that it would have been helpful if, back several months ago, the government actually paid the $45 million they owed to Baha Mar for road works. The Christie administration has been complicit of strangling this project of money and getting us to this sad point, and they know it.
Zakary 9 years, 4 months ago
The Christie administration has been complicit of strangling this project of money and getting us to this sad point, and they know it.
Couldn't be said any better, but the government will be in hardcore damage control right now, as well as the PR from Baha Mar. I'd like to see how they spin this one too.
TalRussell 9 years, 4 months ago
Comrade Myles said watch from July 2014 to July 2015, there shall be tremendous change in our Bahamaland, in one year.
..........//https://www.youtube.com/watch?v=tRTEfiBNDYw
banker 9 years, 4 months ago
Well he said that God would remove people to clear the way. I guess he recognised that he himself was part of the problem and needed clearing away. Dems lear jets and fancy cars were an affront.
TalRussell 9 years, 4 months ago
Today's dry rot effects at the Baha Mar Nation. that was suppose to rise to be the envoy of da Caribbean, will always be remembered as the black Monday, when the two former law partners, Comrades PM's Perry and Papa, were to forever be forbidden to return to active politics, come the General Elections of 2017.
I think Comrade Myles got them two right.
Like see Papa, or Perry, go spin their failed leadership ways out this one?
Ends for good any talk Papa's triumph 2017 return.
Alltoomuch 9 years, 4 months ago
Papa never said he was coming back - y'all keep saying it!! and guess the Chinese workers all gone downtown to British Colonial!
Well_mudda_take_sic 9 years, 4 months ago
Christie/PLP + Ingraham/FNM = Large Scale Corruption & Financial Disaster on a grandiose scale that even Pindling could never have imagined during his lifetime! Hasta la vista, baby!!
Reality_Check 9 years, 4 months ago
Bankruptcy filed in the U.S. Gotta hand it to Izzie, at least he knew there was no chance in hell of him getting a fair shake in the Courts here in the Bahamas. Recent highly controversial rulings of our Supreme Court and Court of Appeals provide ample evidence of the derailment of our train of justice. Besides, it's abundantly clear now that our Christie-led PLP government has all along been in bed with the Chinese much to the chagrin of the Izmirlian family!
banker 9 years, 4 months ago
It's a brilliant move to take the Chinese out of the equation for repossession. By putting in bankruptcy in Delaware, he has take any weapon out of the Chinese hands to take it over. They will become at once creditors like the rest of them, without taking possession of the Izmirlian equity in lieu of payment. Smart move. I bet that the Chinese didn't see that one coming. This pretty much subjugates any reasons for claims on the property itself.
concernedcitizen 9 years, 4 months ago
Don,t be too sure Banker ,Izzie lost before in a NY court against Harrahs
Well_mudda_take_sic 9 years, 4 months ago
The Chinese will simply now have to pay a little more than they expected to in order to buy the influence they need to take full control of the Baha Mar development project. Christie, Brave and the Wicked Witch of the West are all licking their chops!
Well_mudda_take_sic 9 years, 4 months ago
And tomorrow or the following day you will not see the vast majority of Bahamians marching on the Prime Ministers home and Office. Gotta hand it to Christie; he likes his black crabs all riled up in the height of summer knowing that they fear being over baked by the sun!
John 9 years, 4 months ago
Notice how the police and the government has remained deafeningly silent on the raids on local business this weekend, headed by a drunk police officer who shut down businesses and threatened to lock up everyone except his own mother. What kind of country are we running anyway when all the heads in government are unavailable on the weekend and the top brass on the police force disappears and leaves an intoxicated out-of-control officer to have his own way? answerable (it seems) to no one? their golden cow is in trouble, yet they persecute the middle class and working Bahamian who have a few Bahamians employed!. God is still in control, Perry! John 3:16
Jetflt 9 years, 4 months ago
When all else fails.........take the easy road out.........and file for bankruptcy under the U.S. Bankruptcy laws........the people that are owed money will never see it and if they it will be pennies on the dollar. Just like the airlines and the big auto companies did.
TalRussell 9 years, 4 months ago
Baha Mar Nation's fortunes have only ebbed over the years, long before even the Chinese became involved. Now, the true "ownership claims" will emerge and unlike most bankruptcy filings, it has no ongoing operational businesses to protect, or are there other hotel properties connected to Bah Mar?
Baha Mar will have 120 days from today's filing to get ALL creditors to agree to a debt restructuring and during those 120 days, neither Comrade Izmirlian or the Chinese will have much, if any, say.
Regardless, Izmirilian and the Chinese decisions, will from this day forward be made by a complete court appointed stranger, leaving what happens to Baha Mar Nation, not necessarily to be in the best interests of Bahamaland.
I seriously doubt there exists any such thing as a Bankruptcy Court in all of red China?
bahamalove 9 years, 4 months ago
Seems like the Government may have been caught with their pants down. They were touting this imminent resolution to the Baha Mar situation over the last couple days, then Sarkis Izmirlian pulls out this unexpected trump card from his unopened casino and says, "Booyah"! Hey Mr. Christie and Obie, you didn't expect this resolution huh! Now go find that 2% to pay those BTC workers their proper severance on Tuesday.
SP 9 years, 4 months ago
So how is Ignoring qualified Bahamian Investors and sucking up to foreign investors working out for Christie so far?
Jackass Christie gave away 1000's of acres of prime land, sold the hotels for 20cnts on the dollar to a foreign entity and never gave any thought whatsoever of getting any equity, an "out clause" or "default clause" for Bahamas?
Guess which law firm got the commission for sale of the land & legal fees.
Tennyson Wells, Byron Rogers and several others with refused $B projects must be watching with great interest to see Christie in this "catch 22" jackass does as jackass is predicament!
Hopefully Izi can restructure financing and get back on track. We can get rid of Christie later!
John 9 years, 4 months ago
Do not allow the Dragon to take control of Bah Mar! This is spiritual warfare.
SP 9 years, 4 months ago
.................................... Something Stinks With The Baha Mar Deal .................................
An investor signs a financing deal, begins the project and the financier cuts off funding before completion.
Obvious question is "why did China's Bank cease funding"? What reasons would ANY bank cease funding on a project?
With project cost grossly overestimated at $3.5B, money that came out from China, went to US and Cayman, then bankruptcy, the whole process smells like someone caught making 100% profit or money laundering!
Final question that will come out in the wash....What did Christie know and when?
B_I_D___ 9 years, 4 months ago
You won't hear a peep...they will sweep that so deep under the rug and cover their arse holes all you will hear is crickets...
PKMShack 9 years, 4 months ago
you get what you voted for, now next time vote your brain and not colors. don't cry now you ALL knew better that to let perry and his band of bull shittttters back at the controls,, now take responsibility for your vote and blame the person in the mirror. better to do business with the devil you know rather than the one you don't. China giving loans to us and taking jobs all at the same time, Now ask perry where the money from those loans he keep getting or is it papa fault like Obama kept blaming bush for his first 4 years in office
Hogfish 9 years, 4 months ago
dumbass niggas voted for the little sumtin-sumtin wrapped in a yellow tshirt.
wutless perry get his numbers massa straight with the new gaming laws by ignoring the referendum results and spittin in the face of the Bahamian People!
But the numbers massa is happy. He also free from his criminal charges.
This time he will give enough to the campaign for there to plenny extra in the yellow tshirt!
concernedcitizen 9 years, 4 months ago
Not good
SP 9 years, 4 months ago
...................... With Dumb & Dumber At The Helm, History Repeats Itself .....................
Perry Christie with Baha Mar is on the exact same trajectory as Hubert Ingraham was with BTC, and will probably play out even worse.
Dumb and Dumber both refused multiple qualified Bahamian investors and fell hook line and sinker for slick smiling foreigners, they showed an amateurish and tremendous lack of business sense by giving away the tub, bath water, and entire damn bathroom, without securing equity for Bahamas and both dumb and dumber never gave a gnats thought to protect Bahamian assets by including "out clauses" or "default clauses" in Heads Of Agreements.
These are the two clowns that have "led" the country in hyper-overdrive reverse for the past 20 years.
The grand finale` will be Christie leading his spineless troupe of gutless jelly belly MP's to crash and burn with him in 2017.
TalRussell 9 years, 4 months ago
Comrades had only Baha Mar opened a Chicken N' Da Bag stop for tourists during construction they could have kept on funding the 3.5 billion from feeding off da floods of economically challenged tourists we seem only to be attracting shores we Bahamaland.
Can you imagine da potential revenues if only they had featured a outdoor calypso band playing we local songs whilst entertaining all them tourists, while they's be eatin, they's deep fried chickens off brown paper bags and wax papers.
duppyVAT 9 years, 4 months ago
Who ever possessed the government to allow this colossal ugly hotel to be built in the first place????? ..................... We should have never allowed our country to be held hostage to Izzie and the Chinese ............. it will take a smart leader to get us out of this AND make this a long term success ............... but it is a gamble right now
Cornel 9 years, 4 months ago
They owe BEC $19,500,000 . You can see the list of creditors and the bankruptcy petition here - http://hospitalitybusinessnews.com/2015…
TalRussell 9 years, 4 months ago
Comrade Cornel, I thinks you meant say they owes "taxpayers" 19.5 millions dollars.
What is to now happen to all them lands signed over by both PLP and FNM cabinets, including the former cabinet offices of PM Papa? Will the court-appointed trustee, end up selling them lands to another foreigner investor(s)? The "taxpayers" must now demand to see all the "per-construction" economic feasibility studies carried out on Baha Mar "Nation", by both da PLP and FNM cabinets, which have never been made public?
A reminder of da GINN project? So much da Gold Rush - Baha Mar "Nation" in bankruptcy - and no more band-aids at PMH?
Reality_Check 9 years, 4 months ago
Let's see if I've got this right. Christie and Davis have very recently agreed the Bahamas government is to pay (and may have already paid) Baha Mar $21 million of the Bahamian taxpayers' hard earned money in connection with the outrageous cost overruns incurred on the grossly over valued road works project. Meanwhile Baha Mar owes BEC, or should I say the hard working Bahamian taxpayers, $19.5 million which they (Baha Mar) have sought protection from paying by filing a bankruptcy petition in a foreign jurisdiction. Are Christie and Davis as daft as daft can be?!! Have these two clowns had their personal nests so well feathered by others that they now feel compelled to just give away the Bahamian people's money?!!!!!
duppyVAT 9 years, 4 months ago
Izzie is cutting his losses ..................... his dream has gone up in smoke .............. Baha Mar is now on the market as a very expensive repo ............. Who will buy the white elephant??????
When we say it will become a Chinese ghost city yall laugh ................ the Chinese done get their money, their labour and their building materials out of this deal .......... time to move on
Perry needs to go back and find his friends he partied with in Las Vegas to arrange a fire sale and get the broke-ass Russian outta here quick, fast and hurry.
OR IS THIS THE PERFECT TIME FOR IZZIE TO OFFER SHARES TO THE BAHAMIAN PEOPLE SO THAT BAHAMIAN CAN ACTUALLY OWN THEIR ECONOMY ........... PUT OUT 10 MILLION SHARES AT $10 PER SHARE AND RAISE THE MONEY RIGHT HERE ....... GOOD TIME FOR PERRY TO MAKE GOOD ON HIS SLOGAN .......................... BELIEVE IN BAHAMIANS
Thats the Bahamar reality 2.0
PKMShack 9 years, 4 months ago
Chinese don't owe the Bahamian people 19 mil, they owe BEC, unless you get a cut from BEC (and if you do you let me know because I deserve better service from BEC.) I don't see no money from BEC so I straight. As for the comment about BTC it's in better shape that when the Gov. owned it. AND YES I HAVE MY SHARE OF SHARES thanks to the Hubert
concernedcitizen 9 years, 4 months ago
Izzie could of got the Chinese to finish but would not give more equity ,,the only real money Izzie has in is the 200 million he borrowed from Scotia to buy out Ruffin ,and he probably put the property up for that ,not his own guarantee w/ PGC blessing
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