BP supports this masterful move by Government to get Baham Mar open!
Nassau, Bahamas — After two days of intense negotiations in Beijing could not produce an out- of-court agreement on the way forward for Baha Mar, Bahamas Attorney General the Hon. Allyson Maynard Gibson filed a compulsory or involuntary winding up petition against the 14 Bahamian incorporated companies that make up Baha Mar in The Bahamas Supreme Court on July 16, 2015. This effectively paves the way for a court-appointed provisional liquidator to supervise the completion and opening of Baha Mar in the shortest possible time.
Prime Minister Christie in a nationally televised address on Thursday night said: “These compulsory or involuntary winding-up proceedings are designed to work in very similar terms as a chapter 11 but with the stark difference that they will be controlled by provisional liquidators under the supervision of the Bahamian Courts rather than being controlled by Mr. Izmirlian.”
The Prime Minister went on to explain the government’s arrival at this decision in light of a court adjournment on July 7 for parties to pursue a preferred out-of-court agreement on the way forward for Baha Mar.
“It transpired at the Beijing negotiations that Baha Mar’s additional funding requirements had increased considerably, and now included not only funding for completion of construction, but funding to meet start up and operating expenses; funding to cover other liabilities and deferral of principal and the initial balloon payments under the loan facility with Eximbank.
“I am advised that both Eximbank and China Construction Company demonstrated flexibility in meeting Baha Mar’s expanded funding requirements, and project completion date. This notwithstanding, Baha Mar still wanted an extended period for further negotiations which, however, was not acceptable. Baha Mar was also not prepared to agree to terms which would have included the immediate discontinuance of their Chapter 11 Bankruptcy proceedings in the United States and their legal action against China Construction in the United Kingdom. These terms were demanded by Eximbank and China Construction, and supported by the Government, as conditions to any agreement for additional funding, resumption of construction and project completion date.”
The Prime Minister pointed out that the actions taken by the Attorney General were not designed to punish or destroy Baha Mar, but to the contrary “the purpose of the provisional liquidation is to enable the appointment of a neutral party to take control of the process and to work with the key stakeholders under the supervision of the Bahamian Court to prepare a strategic and workable roadmap for the completion and opening of the resort. Such a solution will recognize and respect the rights and legitimate interests of the key parties, including Baha Mar and the Bahamian people.”
He said that the Government meanwhile has made arrangements for a second payment of salaries of Baha Mar’s Bahamian employees, “with a view to such payments being recovered in due course so as not to place any additional strain on the Bahamian taxpayer.”
Photo Caption:
Prime Minister the Rt. Hon. Perry Christie addresses the nation on Baha Mar, July 16, 2015. (BIS Photo/Peter Ramsay)
