Tuesday, a U.S. bankruptcy court in Delaware ruled that most of the multi-billion dollar Baha Mar chapter 11 bankruptcy filing before it would not be heard in a U.S. court and dismissed all but one entity’s ability to seek reorganization here.

Judge Kevin Carey presiding over the U.S. Bankruptcy Court in Wilmington, Del., said the Bahamian government had deep economic interests in the case and partially relied on a Bahamas Supreme Court finding from earlier this year that found that stakeholders in the troubled resort could reasonably expect proceedings to take place in the Bahamas.

The judge allowed one case to continue, that of Florida incorporated Northshore Mainland Services Inc. The U.S. company was not included in a list of entities under the authority of Provisional Liquidators appointed by the Bahamas Supreme Court last week.

The judge expressed disappointment that no consensual resolution to the case seemed likely between the parties and intimated that he may have been inclined to preside over the proceedings if there were more likelihood of it. The fledgling resort, now 9 months behind schedule, blames contractors and financiers, while the contractor says they refuse to work without further pay and claim to be owed about $72 million. State-owned Export Import Bank of China (EXIM) has provided some $2.5 billion to the project so far.

Prime Minister Perry Christie updated the island nation on developments in an address to the House of Assembly on Wednesday saying, “The government is pleased that the Bankruptcy court in Delaware shared the government’s view that the future of the Baha Mar resort should be determined not in, or by a court in Delaware but rather here in The Bahamas, by our own supreme court, especially now that the court here has appointed provisional liquidators.” 

He went on to say that the completion and opening of the resort was a matter of the highest national priority.

2 Responses

  1. Tom Mariner

    Everybody paying attention to what happens when the contractor is CCA?

    Nine months behind on delivering the project, then put the hotel corp into bankruptcy for a tiny fraction of the entire budget.

    Any “assistance” given by CCA’s home country to the Bahamas pales in comparison to the phenomenal damage done by the hundreds of millions of dollars of lost room, food and casino revenue. Jamaica, you paying attention??

    Reply
  2. Lars Jones
    Lars Jones

    Thank you for reading World Casino News and for your perspective. We hope that if you have read the dozen or so articles we’ve written on Baha Mar so far, that you found the reporting accurate, balanced, and informative.

    We are always looking for leads and they often come from loyal readers. If you know of CCA involvement in a Jamaican casino development we’d be glad to report on it. We will follow the progress on Harmony Cove Ltd. and Celebration Jamaica as the projects develop.

    Reply

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