Close to six weeks after bankruptcy protection from the United States was thrown out for the Baha Mar Resort the the Bahamas, their Chinese lender has now decided to foreclose on the Bahamas property. The Export-Import Bank of China announced their decision on the resort, which has a $3.5 billion price tag. A receiver has been appointed and will work to complete the project.
The developer of Baha Mar Resort, Sarkis Izmirlian, stated that the foreclosure is a continuation of the unfortunate pattern of ‘disastrous actions taken by other stakeholders’. Izmirlian believes that if the resort was allowed to remain in Chapter 11 bankruptcy status with the United States, this outcome of foreclosure would have been different.
It was in June that bankruptcy was filed due to cash issues and a disagreement with the contractor of the property. The invested parties of the property, Izmirlian, China Construction America, government of Bahamas and the Export-Import Bank of China, have all been unable to agree on how the project should progress. Once the project is completed, the resort is estimated to contribute 12% of the gross domestic product of the island.
A receiver was appointed by the financial backer after close to 2,000 employees from the Bahamas lost employment from the resort. The employees were on payroll despite the resort not being completed yet and up and running.
Construction had been at a standstill for some time due to the disagreements between the invested parties, particularly the developer and the contractor. If the resort is ever able to be finished, it is expected to have four hotels with 2,200 guest rooms. The project is reportedly 97% complete.