Baha Mar Ltd., developer of the
stalled Baha Mar resort in the Bahamas, has proposed pushing its general
contractor out of the project as part of a restructuring plan filed with the
U.S. bankruptcy court in Delaware last week.
The contractor, CCA Bahamas (a
division of China State Construction Engineering Corp.) also happens to be Baha
Mar Ltd.’s largest creditor. According to Baha Mar’s June bankruptcy
filing, CCA Bahamas is owed more than $72 million for work performed since
In the Aug. 26 filing, Baha Mar
Ltd. proposed that construction contracts between its 14 affiliates and CCA be
“rejected.” The developer added that its affiliates “may negotiate directly
with holders of CCA subcontractor claims upon reconciling amounts due.”
The developer’s restructuring plan
may be a moot proceeding, as the Bahamas government is not recognizing Baha Mar
Ltd.’s U.S. bankruptcy filing. Since the filing, the developer has engaged in
unsuccessful negotiations with the contractor, primary lender Export-Import Bank
of China, and the Bahamas government.
While Baha Mar Ltd. wants to force
out the contractor, the Bahamas government has said it wants to force out Baha
Mar Ltd. and find another developer to finish the project.
A CCA representative didn’t
immediately respond to a request for comment from Travel Weekly on Wednesday.
Baha Mar was originally scheduled
to open last December, but that deadline was pushed back a number of times,
with the developer blaming the contractor for the delays.
The five-hotel resort was slated
to include the Baha Mar Casino & Hotel, plus Grand Hyatt, SLS Lux, Melia
and Rosewood hotels. Rosewood last month put in a request to the Delaware
bankruptcy court to void its Baha Mar licensing agreement.