Last updated: 04:53 PM ET, Fri October 30 2015

Baha Mar Placed Into Receivership

Hotel & Resort | Brian Major | October 30, 2015

Baha Mar Placed Into Receivership

Photo courtesy of Baha Mar

The Bahamas Supreme Court on Friday approved a request from the China Export-Import Bank (EXIM), financier of the stalled $3.5 billion Baha Mar mega-resort, to appoint Deloitte as the project’s receiver.

Nassau-based KRyS-Global and UK-based AlixPartners, which were appointed earlier this month as the mega-resort’s joint provisional liquidators, acknowledged the appointment of Deloitte and Touche as receivers in a statement obtained by TravelPulse.

EXIM’s move was viewed as a surprise considering the Supreme Court had earlier this week granted the parties in the dispute, Baha Mar Ltd., EXIM and principal contractor and equity partner China State Engineering and Construction Company (CSEC), an extension to Nov. 25 to resolve the impasse. The parties were negotiating ahead of a Supreme Court hearing on that date to determine if the company would be placed into liquidation.

The receivership also appears to thwart the likelihood that Sarkis Izmirlian, Baha Mar’s chairman and the project’s creator and minority investor, will retain control of project.

Despite his engagement in the recent discussions to forge an agreement in the months-long stalemate, a Bahamas Tribune report quotes Damian Gomez, the Bahamas’ minister of legal affairs, as saying the project’s Chinese owners “are putting themselves forward to put up the money to move the project forward.”

Another government official said receivership “removes [Izmirlian] from the decision table. He will have to hope for a successful completion and try to assert his minority rights.”

The joint liquidators will “now work closely with the receivers,” according to the statement. "Our role now is to work closely with Deloitte as the bank's appointed receivers with a view to exploring and deciding on the most appropriate strategic option in order to see the resort completed and open for business," the statement reads.

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