‘Up to a year’ to finish Baha Mar

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

IF Baha Mar goes into full liquidation, it could take “six months to one year” for the process to finish, Free National Movement Deputy Leader Peter Turnquest “conservatively” estimated yesterday.

However, a prominent accountant who spoke to The Tribune on the condition of anonymity said the liquidation proceedings would likely take much longer.

“Throw a year out. It’ll take them a year for them to blow their nose,” said the source.

A Supreme Court hearing into the government’s winding up petition against Baha Mar has been delayed from November 2 to November 25.

Last week, the resort’s court appointed joint provisional liquidators got court approval to make more than 2,000 workers redundant.

This has renewed fears that it will take even longer than initially expected for the stalled project to open.

Mr Turnquest said given the current circumstances, he sees little option except the property going into full liquidation.

“There’s always some possibility that China Export Import Bank would foreclose on the property and take it over and complete it,” he said.

“But what’s interesting about what the prime minister has said recently is that the completion value for the project has gone up from $300m to $600m. That’s a stunning announcement. No matter what happens, it calls into question the viability of this project.”

He added: “Save for a foreclosure or rescue, six months to a year is well within the conservative range for when liquidation proceedings could be finished. Finding an investor with enough capital and faith to bring this project to completion is the objective and there are not that many people out there, which doesn’t bode well for a quick opening.”

He continued: “They will have to find buyers for the individual properties. On the face of it, it is not going to be an easy thing to do and, of course, in liquidation rarely do you realise the full value of your investment because everyone recognises that you are in fire sale mode. The liquidator will try to sell assets either as a whole or in parts to get as much money as possible.”

In spite of the latest developments, Prime Minister Perry Christie continues to express optimism about the resort’s future.

“The kinds of discussions that my people are having with the parties would require me not to say anything at this stage,” Mr Christie told ZNS last night. “We are really wanting, we always wanted all of the parties to sit together, arrive at an amicable sort of conclusion to the talks.

“If that doesn’t happen, then we want the next best thing, whoever can in fact move forward and finish the property, we want them to do that because we want the property opened, we want Bahamians employed,” Mr Christie added.

He spoke to ZNS, the state-run broadcaster, after a meeting with officials from one of the Baha Mar branded hotels, SLS Lux.

A representative from the SLS Lux told ZNS that officials were still “excited” about Baha Mar, would “love to explore the option” of taking over the Rosewood property.

Shortly after Baha Mar filed for bankruptcy in the US, Rosewood filed a motion to sever ties with the development.

Meanwhile, Mr Turnquest said the Baha Mar debacle showed the need for more bankruptcy options and a stronger dispute resolution regime.

“This points out the defect or the lack of an alternative dispute resolution regime here in the Bahamas,” he said. “You would’ve heard about the move to make the Bahamas an arbitration centre. We have to make legitimate efforts to make that happen. Had that happened, we would’ve found a comprised solution much earlier and not have to go through the court. We have to look at our insolvency laws. If we had a Chapter 11 option here, we may have been able to find a solution where the developer maintains control and keeps existing creditors secure. Under current laws, however, there aren’t many options in terms of that kind of restructuring exercise. Once government decided to appoint liquidators, in my mind it spelled the beginning of the end. Who will put money into that? Which entity wants to have their name attached to that?”

Comments

ohdrap4 says...

transparency: clear as mud.

Posted 27 October 2015, 12:44 p.m. Suggest removal

Honestman says...

There will be no quick resolution to this farce. The government has failed the developer, the workers and the Bahamas at large.

Posted 27 October 2015, 12:54 p.m. Suggest removal

TruePeople says...

as per usual

Posted 28 October 2015, 9:28 a.m. Suggest removal

wasturrup8493 says...

I don't know why we expected a wave of a wand and then for Baha Mar to magically appear. Doesn't take a rocket science to see that a project that big would have taken a lot more time than it took to build Atlantis if don properly. I really can respect the honesty from the anonymous source and the conservative projection from the minister.

Here is the true beginning or end for the Baha Mar brand.

Posted 27 October 2015, 1:43 p.m. Suggest removal

MonkeeDoo says...

Pinocchio must dissolve the House and Big Bad Brad should begin the dissolution of the PLP. Pindling was a disaster and Pinocchio and the Minions are far worse. They have destroyed the Bahamas.

Posted 27 October 2015, 2:13 p.m. Suggest removal

paul_vincent_zecchino says...

Many of us were kids, teens, when the cancer took root, the late 60s, and as men of some age we see its metastasis, the end-stages.

The chicoms knew exactly what they were doing, they always do.

"Use capitalism to build communism to destroy the West."
- official state policy of The Peoples' Republic of China

Posted 27 October 2015, 6:13 p.m. Suggest removal

Publius says...

Is the Tribune serious with a headline story like this, quoting someone on a completion timeline who as absolutely zero to do with the development in any way, shape or form and who cannot speak to such a thing with any authority and does not even have inside or institutional knowledge thereupon? Slow news day perhaps?

Posted 27 October 2015, 3:09 p.m. Suggest removal

Well_mudda_take_sic says...

This comment was removed by the site staff for violation of the usage agreement.

Posted 27 October 2015, 4 p.m.

TalRussell says...

Posted 27 October 2015, 5:54 p.m. Suggest removal

newcitizen says...

Well we've been failing at running this place ourselves for more than 40 years now. Not much chance they want us back though.

Posted 27 October 2015, 7:21 p.m. Suggest removal

TalRussell says...

Oh my Dear Comrade NewCitizen, you really think it's good idea to return back to the colonial time of 1957. A time when only the "man's" not "woman's. were permitted to vote and these same man's were only allowed to vote, if they owned property and then they could go vote as many times as they owned property.on the different islands. They would vote in Nassau. then hop on a plane or boat (tickets paid for by the Bay Street Boys) to go vote for their candidates on the island you just happened to own another parcel of land on. .

Posted 27 October 2015, 7:57 p.m. Suggest removal

Economist says...

Tal, I don't think that would happen when you look at how the country had evolved through the 1968 Constitution.
Look at the financial success of Bermuda and Cayman (who was far behind us) some may have a point.
And no, I am not suggesting that we give up independence.
But it would be nice if we grew up and took independence seriously.
By the way, keep up the pictures, they are great.

Posted 27 October 2015, 9:21 p.m. Suggest removal

TruePeople says...

Aye some one somewhere musseee chucklin with a FAT STACK. Remember that CCA (and PLP?) intentional sabotaged this project. Nah i ein kno if da PLP in wit it or they just really dumb like how they look but yall don't get caught in the smoke and mirror ting.

Too much ting with Bahamar is Say Say Hear Say ting, and that makes it easy for these badboy theif to eff up we WHOLE country for their little personal interest.

My Bey where MuddatekSic is? Dat bey could prob get to the bottom of this conspiracy

Posted 28 October 2015, 9:32 a.m. Suggest removal

TalRussell says...

Comrade Economist, unlike our still colonial tourism cousin's da Bermudians, we here in Bahamaland, don't assassinate we Governor -General..
Under the dark of midnight, along with their colonial Governor, they even gone assassinate
his 26 year old aide-de-camp and his beloved dog.

http://tribune242.com/users/photos/2015…

Posted 28 October 2015, 10:57 a.m. Suggest removal

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