Sean Moree, front right, counsel for China Construction America Bahamas Ltd, at court yesterday.
Photo: Tim Clarke/Tribune Staff
By LAMECH JOHNSON
Tribune Staff Reporter
ljohnson@tribunemedia.net
BAHA Mar’s ongoing Chapter 11 bankruptcy proceedings in the United States will not be recognised in The Bahamas, a Supreme Court judge ruled on Wednesday morning.
Justice Ian Winder, who had required time to consider his decision after a six-hour hearing on Monday, took only a minute to also dismiss the motion by the Cable Beach resort’s CEO, Sarkis Izmirlian, to get an approved extension for its debtor-in-possession (DIP) financing approval by the Delaware court to take effect.
The judge said he would release his written ruling on the matter within two weeks. Justice Winder is also hearing the government’s winding up petition against Baha Mar, which was filed last week, on July 31.
Baha Mar said it was “disappointed” by the Chapter 11 ruling. “We respect Justice Winder’s ruling and look forward to understanding his reasoning, but we are nonetheless disappointed by the result,” a statement from the resort said. “We do not believe today’s ruling, for which the Government strenuously argued, assures the necessary protection of the assets of Baha Mar, and we do not believe that it is best for the over 2,500 current employees of Baha Mar.
“We note that the stay granted by the US Bankruptcy Court remains in effect, and takes on increased importance in light of this ruling, as all parties must still address that prohibition on the exercise of remedies. Nonetheless, we are continuing to do everything we can through direct discussions with the relevant constituencies and stakeholders to ensure the survival of Baha Mar. “
The government said it welcomed the decision, a statement from Bahamas Information Services saying that it has been “vindicated”.
“Our Government has argued firmly that a Bahamian Court, supervising the work of an independent liquidator, is best suited to oversee the restructuring, completion and opening of the resort should Baha Mar, China Construction and Exim Bank be unable to reach an out of court agreement,” the release, issued by Deputy Director Elcott Coleby, read.
“Our objectives continue to be the prompt completion and successful opening of the Baha Mar project. We are confident today’s decision will encourage all parties to focus on these goals. It is a matter of the greatest national importance for the resort to open as soon as possible, under private ownership and operation.”
Baha Mar and its affiliated companies filed for bankruptcy in a Delaware court on June 29, blaming the resort’s contractor, China State Construction America (CCA), for the construction delays that caused it to miss previous opening deadlines.
The resort also took legal action the following day against CCA’s parent company, China State Construction Engineering Company, in England’s High Court of Justice.
Full story and analysis in tomorrow’s Tribune
Source link : http://www.tribune242.com/news/2015/jul/23/breaking-news-judge-refuses-baha-mars-application-/?news
Author :
Publish date : 2015-07-23 03:00:00
Copyright for syndicated content belongs to the linked Source.