Friday, July 31, 2015
By NICO SCAVELLA
Tribune Staff Reporter
nscavella@tribunemedia.net
A SUPREME Court judge adjourned proceedings on the government's petition to wind up Baha Mar to August 19-20 on Friday morning after revelations that Baha Mar's contractor has expressed reservations about the personnel appointed to serve as provisional liquidators for Baha Mar.
In proceedings before Justice Ian Winder, it was revealed that China Construction America (CCA), in a letter sent to the Office of the Attorney General from PriceWaterhouseCoopers (PwC) Bahamas, contested the appointment of three PwC professionals to serve as Baha Mar's provisional liquidators. The letter was reportedly sent between midnight and 1am on Thursday.
The PwC Advisory (Bahamas) liquidators, who have been lined up to take over at Baha Mar in a 'worst case scenario', are managing partner, Prince Rahming; Gowon Bowe (also the Bahamas Chamber of Commerce and Employers Confederation's chairman); and Garth Calow.
Yesterday however, it was revealed by counsel that the government has already approached three professionals from Ernst and Young (Bahamas) - Michele Thompson, Roy Bailey and Karen Hutchinson - as potential replacements for the PwC professionals.
Peter Knox, QC, representing the government, the applicants in the matter, submitted to Justice Winder that it would be "inappropriate" to continue proceedings in light of CCA's announcement. He requested an adjourned date of August 10, submitting that it should be a date in "the very near future" due to the "gravity" of the situation.
He added that the government was still optimistic that talks between the relevant parties regarding the Baha Mar crisis would eventually result in a mutual agreement.
Justice Winder ultimately set a date for the hearing of August 19-20.
However, Maurice Glinton, QC, Baha Mar's attorney, expressed his disappointment with the announcement by CCA, which he said he was made aware of around 1am on Thursday.
He questioned the circumstances surrounding CCA's stance on the liquidators and its subsequent announcement, and submitted that any liquidators involved in the matter are subjected to the respondents being a part of the (vetting) process to make the situation "tidier" by the time it reaches court.
Afterwards, speaking to reporters, he added: "This is all part of what it is we have to meet and have had to meet from the very beginning, and in due course we intend to prove to the court that the petitions or the petition which is being filed by the so-called petitioners, is fundamentally flawed, fatally flawed, can't go anywhere, and is all a charade.
"It's abusive, it's oppressive, and when we get back into court we will endeavour to convince the judge as well that this is not a situation where provisional liquidators ought to have been appointed or sought to be appointed by the so-called government, if that in fact is the true petitioner.
"The indication, for example, in a letter that we got is that the parties are talking and the government is hopeful of there being a quick resolution to these matters real soon and hopefully that real soon will be before the date which is fixed for us to be back here. If that happens, the parties are speaking, not necessarily loving each other but again working with each other to get this put right for the benefit of the Bahamian people, all of the employees, then it will all be worth it.
"But until then we intend to meet every aggressive move made by the government to derail what in fact we've set about doing down there. Other people's misfortune we've had to settle with and we've had to deal with. But this is just not a misfortune for us, it's a misfortune for the Bahamian people. We've just been put in the spotlight about all of this sort of thing. We've got to deal with it because it is a legal matter."
Two weeks ago, the government announced its decision to file an involuntary winding up petition against the 14 Bahamian incorporated companies that make up Baha Mar in the Supreme Court. The decision came after the resort's developer filed for Chapter 11 bankruptcy in the US last month.
Prime Minister Perry Christie said then: "The role of the liquidators will be to expedite the resolution of the matter and to prepare a plan for the restructuring of Baha Mar, that will result in the earliest possible completion and opening of the project. The Bahamian court is familiar with using the provisional liquidation procedure as an effective tool to reorganise a company's affairs."
In a recent interview with The Tribune, Mr Bowe said while Baha Mar's court battle might be "protracted", the Christie administration's "reactionary" response to resort CEO Sarkis Izmirlian's Chapter 11 bankruptcy filing should be seen as a bid to protect this country's interests.
"Liquidation in the Bahamas is essentially a stop and sale action, saying this entity can no longer pay all of its bills," Mr Bowe said. "But the intent by the government is not to stop and sell, but to take it out of the hands of the party with the emotion and the contention, and put it into the hands of an independent entity."
Mr Izmirlian responded this week on a radio talk show to Mr Bowe's comments, saying: "And when you have the government's handpicked liquidator that goes out in the press and makes statements like, and I quote, "The intent by the government is to take it out of the hands of the party with the emotion'; that does not sound like a legal argument for defending the people of the Bahamas. That sounds like revenge to me."
Comments
Well_mudda_take_sic says...
In all fairness, Justice Winder should have ordered that all costs of today's hearing be borne by the Christie-led PLP government for having put forward the names of PwC partners to act as provisional liquidators who could not serve in such capacity because they have a fundamental conflict of interest. It's amazing that the PwC partners concerned had apparently attested in an earlier sworn affidavit to having conducted an independence check within their global organization in order to verify their independence, only to have to later acknowledge by letter (presumably on being called out by others) that they are in fact not independent. Baha Mar should not find itself saddled with the costs of today's hearing no matter what the eventual outcome of the hearing to appoint provisional liquidators. Today was nothing but a typical useless and costly day before the Bahamas Supreme Court, one of many that will lie ahead if the Christie-led PLP government does not come to its senses and withdraw its foolish and vindictive petition for the liquidation of Baha Mar.
Posted 31 July 2015, 3:59 p.m. Suggest removal
Reality_Check says...
It certainly does seem that Maynard-Gibson (aka the Wicked Witch), Gomez (aka the Minion) and their Chinese backers wanted to have the deck stacked against Baha Mar from the very outset by the appointment of provisional liquidators partial to their devious interests and with an apparent antagonistic attitude towards Sarkis Izmirlian. All of this nonsense and foolishness on the part of our government, motivated by small vindictive and malicious minds, really must stop!
Posted 31 July 2015, 4:23 p.m. Suggest removal
Zakary says...
<ul style="list-style-type:none">
<li><p style="color:gray" align="justify">....having put forward the names of PwC partners to act as provisional liquidators who could not serve in such capacity because they have a fundamental conflict of interest. It's amazing that the PwC partners concerned had apparently attested in an earlier sworn affidavit to having conducted an independence check within their global organization in order to verify their independence, only to have to later acknowledge by letter (presumably on being called out by others) that they are in fact not independent.</p></li>
</ul>
<p align="left">This is my opinion, but I’m starting to think that the “Government” has significant stake in the Baha Mar project in some way, shape, or form, which I hope isn’t true.</p>
<p align="left">I don’t have the evidence to back that up, but one of the ways to explain the Government’s actions up to now is to assume that they possess significant stake in this project. Everything then makes complete sense. It is interesting that Baha Mar’s developer proposed that the Government provide a guarantee to the Ex-Im Bank of China.</p>
<p align="left">In addition, the winding up process is looking more and more like a means to an end, a loaded gun of sorts, to scare certain parties in the ongoing negotiations.</p>
<p align="left">Why say you are appointing “independent” provisional liquidators, only to find out practically on the date of the court hearing that they are in fact, not independent (conflicts of interest)?</p>
<p align="left">That's hilarious.</p>
Posted 31 July 2015, 9:09 p.m. Suggest removal
realfreethinker says...
That is absolute incompetence. As critical as the government say this is one would assume they would dot all Is and cross all Ts.
Posted 1 August 2015, 9:08 a.m. Suggest removal
John says...
Government gonna play the legal/money game until they run this country. All Izmirilian looking for is some compassion and people to understand his position. Put personalities aside and come to a damn agreement. Get the project finished the you could still fight if you want to.
Posted 31 July 2015, 4:11 p.m. Suggest removal
realfreethinker says...
Bahamar now have a real lawyer working for them.
Posted 31 July 2015, 4:53 p.m. Suggest removal
Craig says...
This is madness!! What in the world do accountants know about construction? The PM and his cohorts are being ruled by hubris, arrogance, emotion and ignorance. This is the worst cause of action.
We all know what the jurisdcition argument against the chapter 11 ruling is all about. Fees!!. Yes the local lawyers and accounts stand to make 10's of millions on this mess. While the local contractors, vendors and others who are owed money are left holding the bag.
Let this man finish the project. It is 97% complete!! Let him spend the $400 mil he promised with the local contractors. Can you imagine the affect on the local construction industry? The jobs created and the affect on the local economy.
PM please seek some good advise and start making good decisions!!!
Posted 31 July 2015, 5:35 p.m. Suggest removal
birdiestrachan says...
It is the China Construction who is contesting the appointed liquidators . Mr: Izmirilian seems to think that he alone and off course China Construction.can say what ever they want. But Gowon Bowe a Bahamian has no right to speak. And the UNCLE Toms on this sight agree with what ever they say.
Posted 31 July 2015, 5:48 p.m. Suggest removal
Reality_Check says...
YOUR FIRST SENTENCE IS A BOLD FACED LIE AND YOU KNOW IT! CSCEC had some initial concerns about the appointment of PwC personnel as liquidators but quickly confirmed they would not oppose their appointment. Why on earth would CSCEC oppose the appointment of liquidators likely to be partial to them and their subsidiary, CCA?
Posted 1 August 2015, 6:30 p.m. Suggest removal
MonkeeDoo says...
Birdie is a fool. People like you wil take this country down in a hurry.
Posted 31 July 2015, 8:15 p.m. Suggest removal
banker says...
Well said. After the demise of the Bahamas, and its rebirth in 2050, the PLP will be treated in this country as the Germans do now for the criminal Nazis.
The scores of young men murdered by the gunplay in the Bahamas, is the PLP's own legacy of genocide starting with Pindling. How many young men have gone to sea to tote square grouper for Carlos, or Pedro and anyone of the criminals, including the MPs and PM who facilitated them, and have never come back? How many young me lay dying in the street, with their blood spilling on the ground because they are poorly educated, illiterate, jobless, marginalised and dispossessed and have no country that they can exist in without crime?
That is the Pindling & Christie legacy. They have destroyed this country while enriching themselves, and history will judge them as the criminals that they are. Anyone with a surname who was in the Pindling or Christie government, will be reviled by generations to come, once truth and history have their say.
Posted 1 August 2015, 6 p.m. Suggest removal
Wideawake says...
Banker your comments are extreme! How did the present government get elected.? Have we, or have we not, got the Government we deserve? (With Branville McCartney's help, of course!) and If so, how can we the people ensure that we deserve better in time for the next election?
How can we move from a House of Assembly filled with career politicians who for the most part seem to serve in order to gain financially, to a House of Assembly filled with Statesmen and Stateswomen who run for election because of their desire to serve the Bahamian people and contribute to the orderly development of our country?
Posted 2 August 2015, 4:03 p.m. Suggest removal
birdiestrachan says...
Such BITTERNESS. How is the blood pressure? So, So many lies. It is my hope for you all sake that you all do not believe the lies you all have written. only a true liar believes their own lies.
Posted 2 August 2015, 6:52 p.m. Suggest removal
Reality_Check says...
Truth be told, I'm not really all that sorry to hear about your high blood pressure problem Birdie.....those who talk about it usually suffer from it.....just ask Christie if you don't believe me!
Posted 2 August 2015, 8:31 p.m. Suggest removal
Wideawake says...
Trouble is so many big ego are so puffed up because far too much has been said in anger in the press and in TV interviews. How, now, are differences ever to be resolved? Who will be big enough to apologise for the hurt feelings they have caused or for the mistakes they have made?
How does The Bahamas Government admit they were wrong to start the involuntary winding up move?
How does the PM say he was wrong to question Sarkis' mental state?
How does Sarkis step back and moderate some of his statements, especially those concerning the outcome of the next election?
How does Big Bad Brad ever again get his clothes washed at Super-wash?
Will Brent ever come out from " under the rock" that Fred sent him to?
Will CCA ever admit that they did some crappy work?
How will our Chinese friends save face now the World sees their signature development project in the Western Hemisphere stuck in limbo?
Posted 3 August 2015, 4:48 p.m. Suggest removal
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