Curry favorThe ruling says CCAB and CEXIM agreed that “complete liquidation is a fundamental solution to the project’s problems”.
Minutes showed “[t]he two parties agreed on the criteria for finding new strategic investors,” including priority to Chinese companies.
“The defendants actively worked to curry favor with the Bahamian government and behind the back of BML,” the ruling says.
“Through the end of 2014 to the beginning of 2016, the CSCECB board member had CCAB pay the consulting company (NOTARC) belonging to Leslie Bethel, son of Sir Baltron Bethel (a senior advisor to the Bahamian prime minister) approximately $2.3 million, purportedly for consulting services related to business opportunities in Panama.”
It adds, “The record evidence establishes, at the very least, that (i) the defendants relied on their business relationship with Leslie Bethel to gain access to Sir Baltron Bethel and by extension the Bahamian government, and (ii) Sir Baltron Bethel and the Bahamian government coordinated with the defendants during the 4-way negotiations between BMLP, the defendants, the Bahamian government, and CEXIM, which ensued after deadline failure.
“For example, while CCAB was in negotiations with the Bahamian government over a heads of agreement in relation to the Hilton development, Mr. [Daniel] Liu (senior vice president of both CCA, Inc., and CCAB and lead negotiator for the purchase of the Hilton) forwarded an email communication from Sir Baltron Bethel [to] his son, Leslie Bethel.
“Mr. Liu confirmed in his deposition testimony that he did so because he was ‘looking for help’ from Leslie Bethel, and wanted Leslie Bethel to speak with his father, Sir Baltron Bethel, about proposed edits made by Sir Baltron Bethel to the heads of agreement.
“Leslie Bethel reassured Mr. Liu that ‘Sir B is one of CCA’s biggest supporters’ and promised to provide further help with the defendants’ interactions with the Bahamian government. Mr. Liu reciprocated the sentiment, saying “I am sure about Sir Baltron and yourself as our best friend.”
The ruling adds, “Later on, after the March 27, 2015 deadline had been missed and in advance of a planned negotiation meeting with BML, Sir Baltron Bethel asked Mr. Liu for advice as to the ‘[m]anner in which you would wish negotiations to proceed’.
“Later, in a July 22, 2015 email (apparently inadvertently copying representatives of BMLP) Sir Baltron Bethel proposed ‘[o]ne way of making up the equity shortfall of Baha Mar would be for the bank to advance the idea of an additional equity partner with hotel and casino experience being brought in within say 90 days.
“He was careful to add that ‘[s]uch a suggestion should preferably come from [the] bank and not government to prevent Baha Mar taking the position government is trying to push lzmirlian out’.
“Mr. Liu, in an email to Messrs Wang, Wu, and Yuan, celebrated an article describing BML’s Chapter 11 filing, and recommended that the defendants ‘take advantage of the Bahamas government. If the government, the Export-Import Bank of China and CCA join forces, that can turn passive into active!’
(David Wang was a vice president of both CCA, Inc., and CCAB. Ning Yuan was Tiger Wu’s predecessor as the CSCECB board member).
“[Liu] added, ‘reclaiming the land and not recognizing the US Chapter 11 were fatal blows to Baha Mar’.
“This email chain also references apparently bilateral meetings between the defendants and the ‘prime minister’s senior advisor. This email chain is a clear endorsement of the strategy of pushing BMLP and BML out of the project, and contemplates having the Bahamian government’s assistance in doing so.”
After the U.S. bankruptcy case was dismissed in favor of a liquidation proceeding filed by the Bahamian government, BMLP offered to “match the price” of any other offer to buy the project’s assets out of liquidation, but did not receive a response.
The project was sold out of liquidation to Perfect Luck, Ltd., a subsidiary of CEXIM, and then subsequently bought by another Chinese entity, Chow Tai Fook.
“Thus, the failure to get the project back on track after the March 27, 2015 deadline was missed due to the defendants’ conduct,” the ruling says.
The court found that BMLP proved “by more than clear and convincing evidence” that the CSCECB board members and CCAB’s acts of fraud and the CSCECB board member’s multiple material breaches of the investors agreement were the direct and proximate cause of the loss of BMLP’s investment in BML.
“To wit, but for the defendants’ conduct, there would not have been a liquidity crises, a reasonable achievable date certain for opening would have been agreed upon with an appropriate plan in place to achieve that date, there would not have been massive misappropriation of funds, the defendants would have maintained adequate work force for the project and not slowed down the work or otherwise diverted critical project personnel and resources such that BML would not have lost its entire $845 million investment.”
The court said BML’s filing for Chapter 11 bankruptcy in June of 2015 was a foreseeable and natural consequence of the defendants’ actions.
The court found that BMLP was damaged in the amount of $845 million, plus pre-judgment interest running from May 2014.
The court also found that CCAB misappropriated project funds for the personal use of officers.
Last night, the Office of the Prime Minister released a statement saying Prime Minister Philip Davis directed Attorney General Ryan Pinder to conduct a review of the recent ruling issued by Supreme Court of the State of New York in the case of BML Properties Ltd. v. China Construction America, Inc.
“The prime minister has stated that the government will wait the advice of the Office of the Attorney General and Legal Affairs before making any further comments or decisions regarding the findings of the ruling.”
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=67173696f1e048b39427ce5d233cef41&url=https%3A%2F%2Fwww.thenassauguardian.com%2Fnews%2Fizmirlian-wins%2Farticle_cd2ca3f0-8e6a-11ef-b056-a739769c8f3a.html&c=9647752693093232502&mkt=en-us
Author :
Publish date : 2024-10-21 08:13:00
Copyright for syndicated content belongs to the linked Source.
