Tuesday, July 21, 2015
Tuesday, July 21, 2015
Subsequent to last Friday’s petition to the Bahamas Supreme Court for the winding up of Baha Mar and the summons for the appointment of a provisional liquidator – and following intensive weekend consultations with Baha Mar, China Construction and Exim Bank of China – the Attorney General has requested that a hearing of the summons for the appointment of provisional liquidators be held next week.
The Supreme Court scheduled the hearing for July 31, 2015 in Nassau. In a related announcement, the Supreme Court also adjourned its hearing on the matter of recognition for Baha Mar’s Chapter 11 Bankruptcy filing with an announcement it would rule on the matter by 10:00 am July 22, 2015.
The role of the provisional liquidator would be to oversee the restructuring and opening of Baha Mar under the supervision of the Court, should the parties be unable to negotiate an agreement to complete and open Baha Mar.
In a statement released by the Bahamas Information Services, the government has said that its objective remains first and foremost to ensure the opening of Baha Mar under private ownership and operation.
The statement continues:
“The project is already 97 per cent complete. It is now a matter of national interest that the resort opens in a timely manner. That is why the government agreed, at the request of the parties, to chair “all-party-negotiations” in Beijing July 13-15, 2015. The government continues to urge Baha Mar, China Construction and Exim Bank to secure an agreement to complete and open the resort.”
“Until then, we have a duty to protect all Bahamians. The petition for the winding up of Baha Mar and the summons of a provisional liquidator is a precautionary measure, designed to protect Bahamians in the event that no agreement can be reached out of court.”
“Should the parties arrive at an impasse, restructuring of Baha Mar must take place under the supervision of a Bahamian court. The independent provisional liquidator will be lawfully bound to have regard to the best interests of the Bahamian people, Bahamian contractors, creditors, Baha Mar employees, and investors in Baha Mar.”
“In the meantime, we note that Baha Mar has committed to continue negotiating China Construction to secure an agreement on the completion and opening of Baha Mar. The government and Exim Bank will be observers at those meetings.”
“Should Baha Mar and China Construction agree, they will then negotiate with Exim Bank the financial terms required to support their agreement. The government of The Bahamas will also be an observer in these negotiations.”
“Once financial terms have been agreed, we anticipate that all-party talks – in which the government of The Bahamas will be an active participant – can reconvene, leading to an agreement that defines the terms of the construction and financing for the resumption, completion and opening of Baha Mar.”