BML Properties Ltd. said yesterday that it is willing to work on a mutually satisfactory resolution to its decade-long battle to recoup almost $1 billion from China Construction America (CCA), after CCA asked a New York court for a stay on the $1.6 billion payout to BML following a ruling that found that CCA committed fraudulent acts that ultimately pushed BML out of its Baha Mar investment.
That stay was granted on an interim basis by a New York court Monday as CCA appeals the $1.6 judgement.
BML said, “BML Properties Ltd. is opposed to CCA’s attempts to delay any enforcement in this case pending the outcome of the appeal which could take years, without proper bonding or satisfactory guarantee.
“CCA has avoided answering for its wrongdoings for a decade. However, BML Properties emphasizes that it stands willing to work constructively with CCA and its parent company CSCEC (China State Construction Engineering Corporation Ltd.) to reach a mutually satisfactory resolution.”
That $1.6 billion judgment against CCA, which was handed down last month by a New York judge who made the award to Sarkis Izmirlian’s BML Properties Limited.
CCA applied for a stay on the judgement citing in its application that if it was to try to begin to satisfy the judgement the company would become insolvent, which it said threatens the continued operation of two hotels it owns in The Bahamas.
CCA said the ruling would be a “gross injustice” to its business and thus called for the court to order an emergency stay of the enforcement of the judgment.
“The decision imposes $1.6 billion in liability on companies worth nowhere close to that,” CCA wrote to the court.
“The decision is egregiously wrong. But if it goes into effect, defendants will be insolvent.”
CCA added, “… Defendants were not in a financial position to bond the $1.6 billion judgment.”
CCA also argued that a stay would not prejudice the judgment already awarded to BML, though CCA does risk increasing its payout to BML significantly if an appeal runs out too long, given that the $1.6 billion judgement also imposed a daily interest rate on CCA that amounts to more than $400,000.
“Defendants plan to perfect their appeal within eight weeks of filing their notice, far earlier than the six-month time frame provided for in the NYCRR (New York Codes Rules and Regulations, and the appeal may be resolved within several months,” the stay request explains.
I was only last week that CCA appealed the $1.6 billion ruling, which found that CSCEC committed material breaches of the parties’ investors agreement by requesting $54 million from BML to pay subcontractors, but instead used it to purchase the British Colonial hotel in Downtown Nassau.
After the ruling was delivered, Izmirlian said his side intends to proceed with the enforcement of the judgment in a “thoughtful and prudent manner”.
Dionisio D’Aguilar, former minister of tourism and aviation and former BML chairman, said CCA should look to settle with Izmirlian’s company because appealing the case is incurring interest in the tens of millions.
D’Aguilar told reporters he is shocked that CCA, the US business unit of CSCEC, is seeking to appeal the New York court ruling. He said it’s in the best interest of Izmirlian and CCA to focus on a settlement.
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Publish date : 2024-11-05 23:45:00
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