Baha Mar Liquidators Obtain Key Funding For Site's Sole Operating Hotel
Photo courtesy of Baha Mar
Provisional liquidators for the stalled $3.5 billion Baha Mar mega resort stepped in last week to ensure operations continue at the development site’s lone operating hotel.
Liquidators Alix Partners and KRyS Global received approval from the Bahamas Supreme Court to obtain funding from the China Export-Import Bank to meet an $8.7 million insurance payment for the Melia Nassau Beach Resort, according to a Bahamas Tribune report.
In an affidavit, Ed Rahming, a KRyS Global partner, had warned the court that the liquidators would be forced to shut the hotel if they failed to make the insurance payment this week. The China Export-Import Bank is the project’s primary financier.
An Alix Partners spokeswoman confirmed the report, saying in an email, “The insurance broker has been paid and insurance coverage is in place for the hotel.” The liquidators “have been working tirelessly to preserve the assets and move the project forward,” she added.
The 694-room Melia property is the project’s fifth hotel and sole pre-existing property. The hotel recently completed a multi-million dollar renovation.
The liquidators also sought an additional $16.3 million from undisclosed lenders to cover the “remaining costs likely to be incurred during the two-month provisional liquidation,” according to the report. The liquidators reportedly located $10.3 million in cash assets after taking control of the seven Baha Mar companies on Sept. 4.
Rahming added that the balance of the $21.7 million in roadwork funds owed by the Bahamas government to Baha Mar for street re-routing and infrastructure work has been transferred to the liquidators. The funds were likely used to make September salary and benefit payments to Baha Mar’s 2,400 staff, the Tribune report added.
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