Baha Mar contractor says resort at fault for bankruptcy, delays

By Kali Hays

New York, July 7 – Baha Mar Ltd. general contractor for its unfinished Baha Mar resort, CCA Bahamas Ltd., said that the company’s bankruptcy filing is the result of “mismanagement” and not due to delays caused by the contractor as the company claims, according to a Tuesday news release.

As previously reported, CCA is a wholly owned subsidiary of China State Construction Engineering Corp. Ltd., and Baha Mar has repeatedly blamed the contractor for a substantial loss in planned revenue due to repeated construction delays and missed deadlines.

Now, CCA is placing blame solely on missteps of Baha Mar’s management and its failure to secure adequate financing for the incomplete project and said that the resort’s “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,” according to the release.

The contractor went on to say that Baha Mar’s delays are due to the resort replacing its principal architect after construction had started, late and incomplete delivery of design packages and more than 1,300 changes to construction directives.

“Since February 2015, CCA Bahamas and our subcontractors have performed nearly $72 million of contract work for which we have received no payment,” the contractor said in the release. “Our aggregate investment in and commitment to the project, including money advanced on behalf of the developer, approximates $220 million.”

CCA said that it has “continually acted in good faith” and that Baha Mar’s filing for bankruptcy protection in the United States is “misplaced and calculated to benefit the project’s developer.”

As reported, a hearing to recognize Baha Mar’s U.S. bankruptcy proceedings was set for July 7 in the Supreme Court of the Commonwealth of The Bahamas.

Baha Mar is a Nassau, Bahamas-based resort that filed for bankruptcy on June 29 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 15-11402.

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