General contractor comments on Baha Mar
07 JULY 2015 6:55 AM
CCA Bahamas Ltd. said in a statement that Baha Mar’s decision to file bankruptcy was a result of its failure to secure adequate financing and its design mismanagement on the project.
NASSAU, The Bahamas, July 7, 2015 -- CCA Bahamas Ltd. (CCA Bahamas), a wholly owned indirect subsidiary of China State Construction Engineering Corporation Limited (CSCEC) and the general contractor for the $3.5 billion Baha Mar resort project, today issued the following statement regarding the recent decision made by Baha Mar Ltd., the developer of the Baha Mar resort, to file for bankruptcy protection in the United States Bankruptcy Court for the District of Delaware:
"Baha Mar Ltd.'s decision to file for bankruptcy protection is the direct result of its failure to secure adequate financing and its mismanagement of the design of Baha Mar resort project. This mismanagement includes replacing the principal architect after construction had commenced, the late and incomplete delivery of design packages and over 1,300 Construction Change Directives. The vast majority of the Baha Mar debtors are organized under the laws of the Bahamas, the Baha Mar project is located in the Bahamas, and the Bahamian people are deeply invested in the future of the project. Baha Mar Ltd.'s decision to file for bankruptcy protection in the United States was, therefore, misplaced and calculated to benefit the project's developer over the interests of the Bahamas and its people."
"Baha Mar Ltd.'s recent public attempt to shift responsibility away from itself and blame CCA Bahamas and our subcontractors for the delays in the project's completion is misleading and dishonest. It is insulting to the many talented and hardworking employees and subcontractors that work for CCA Bahamas and harms the interests of the people and government of the Bahamas that are represented by this landmark project."
"Since February 2015, CCA Bahamas and our subcontractors have performed nearly $72 million of contract work for which we have received no payment. Our aggregate investment in and commitment to the project, including money advanced by CSCEC on behalf of the developer, approximates $220 million. We have continually acted in good faith in the performance of this work reliant upon the belief that Baha Mar Ltd. would fulfill its responsibilities as the owner."
"CCA Bahamas is committed to holding Baha Mar Ltd. accountable for its improper actions and failed commitments to the Bahamian government, the people of the Bahamas, and all of its creditors. We look forward to working with the financial community and the Bahamian government in order to complete this important project."
Established in 1985, China Construction America (CCA) is the North American and South American subsidiary of CSCEC. CSCEC is a public company listed on the Shanghai Stock Exchange with a total market capitalization of $48 billion as of June 2015. Ranked 52nd among Fortune Global 500 companies and no. 1 on the ENR Global Contractors list in 2014, CSCEC is unrivaled by any other construction company in the world.
CCA Bahamas is a wholly owned subsidiary of CCA with founding principles of integrity and innovation with quality assurance and value creation. With a revenue of over $2 billion in 2014, CCA is ranked no. 32 top contractor in the US. In accordance with its core values, CCA is committed to creating value for all stakeholders and building a better Bahamas and a better world.
CCA Bahamas has retained Island Capital Group, a private real estate merchant bank, led by Andrew L. Farkas, as its exclusive restructuring and financial advisor in relation to the Baha Mar project. CCA Bahamas has also retained the law firms of Shearman & Sterling LLP; Peckar & Abramson; Squire Patton Boggs in the United States and McKinney, Bancroft & Hughes in Nassau, Bahamas to represent it in connection with all of its affairs in the pending U.S. bankruptcy proceedings and in the Bahamas.