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Published on 12/29/2017 in the Prospect News Distressed Debt Daily.

Baha Mar construction manager refutes allegations raised in lawsuit

By Caroline Salls

Pittsburgh, Dec. 29 – Baha Mar project construction manager/general contractor CCA Bahamas, Ltd., a wholly owned indirect subsidiary of China State Construction Engineering Corp. Ltd. (CSCEC) responded in a statement released Dec. 29 to a lawsuit filed by BML Properties Ltd. in New York on Dec. 26.

In the lawsuit, China Construction America, Inc. and various related business entities were sued amid allegations that they engaged in massive fraud, malicious acts of deceit and interference and breaches of contract as part of a multi-year self-enrichment scheme related to the Baha Mar Resort project in The Bahamas.

As a result of the court action, CCA may face more than $2.25 billion in liability for misleading and defrauding BML Properties and depriving it of its investment.

“CCA Bahamas is proud of the world class Baha Mar resort it constructed and, by any objective measure, the resort is expected to have a substantial beneficial impact on the economy of The Bahamas and its citizens,” CCA Bahamas said in its release.

“The lawsuit filed by Mr. Izmirlian is a vindictive and baseless attempt to redeem his own failures to properly manage his companies and their investment in the Baha Mar resort project.

“Mr. Izmirlian’s scattershot allegations are totally false and constitute a gross abuse of the American judicial system.

“CCA Bahamas will vigorously defend these unfounded claims.

“In stark contrast to the outrageous claims alleged in BML’s lawsuit, CCA Bahamas’ projects are characterized by excellence, superior quality and trustworthiness.

“The company’s guiding principle is a respect for hard work and a commitment to collaborate with the communities in which it operates. This credo of the company certainly proved no more true than with respect to its tenacious commitment to complete the construction of Baha Mar.”

Baha Mar is a Nassau, Bahamas-based resort.


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