By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

CCA Construction Inc has obtained an order to lift the automatic Chapter 11 “stay” from the New Jersey Bankruptcy Court right after the Christmas holidays in a bid to join in with the appeal filing - even as the original Baha Mar developer said it had “no doubt” it would be victorious in the appeals court.

In an order filed on December 27, 2024, the bankruptcy court lifted the automatic stay, allowing CCA Construction to join in the New York appeals court case against the $1.6bn damages owed to Baha Mar’s original developer, led by Sarkis Izmirlian.

CCA Construction Inc, the contractor’s New Jersey-based entity, sought Chapter 11 bankruptcy protection in the US legal system to safeguard its assets and business from any attempt by Baha Mar’s original developer to enforce his near-total New York State Supreme Court triumph by seizing their property.

The Bahamian-domiciled entities also named as defendants in the New York action, CCA Bahamas and China State Construction and Engineering Construction (CSCEC) Bahamas, are not impacted by the Chapter 11 bankruptcy protection filing.

And The Tribune also understands that they, as well as the separate Bahamian incorporated entities that hold downtown Nassau’s British Colonial and Margaritaville Beach Resort, are not subject to any administration, receivership or liquidation-related proceedings before this nation’s Supreme Court - as had been threatened in previous CCA legal filings.

This is likely because, as the Chapter 11 paperwork makes clear, CCA Bahamas and CSCEC Bahamas are required to file the contractor’s substantive appeal against Mr Izmirlian’s damages award with the New York court by December 30, 2024. They would likely not be able to do so if subject to any receivership and/or liquidation proceedings in The Bahamas.

In a statement, also filed with the New Jersey Bankruptcy court on 27, December, 2024, BML Properties Ltd noted that with an outstanding judgement of $1.6bn they are “by far” CCA Bahamas’s largest creditor and does not object to the automatic stay being lifted.

“CCA owes BMLP more than $1.6bn under an enforceable New York State court judgment, making BMLP by far the largest creditor of CCA,” said the court filings.

“After discussing changes to the proposed form of order with CCA’s proposed counsel and obtaining a commitment from counsel to provide BMLP with certain financial reporting, BMLP does not object to CCA’s request to modify the automatic stay to permit CCA to continue with the Appeal of the New York judgment.”

BML Properties in its statement accused CCA Bahamas of giving a “remarkably one-sided and incomplete picture” of the litigation during their first appearance in the New Jersey Bankruptcy Court.

The statement said CCA had not providing the 74-page verdict in which New York State Supreme Court judge Andrew Borrok awarded Mr Izmirilian and his family the full value of their original $845m equity investment in the New Providence mega resort project plus more than a decade’s worth of pre-judgment interest after finding CCA and its affiliates perpetrated “an absolute sham and shakedown” by providing “phony” completion dates to the New Jersey court.

BML Properties said it “has no doubt” they will be victorious in the New York Appeals Court and “vindicate its rights” in the Chapter 11 proceedings.

“BMLP has no doubt that it will successfully defend the appeal in New York and fully intends to vindicate its rights in this Chapter 11 proceeding, including but not limited to pursuing any and all claims that may lie against nominally separate affiliates of CCA such as its ultimate corporate parent CSCEC, Ltd,” said the court document.

The irony of CCA having to seek Chapter 11 bankruptcy protection with a sudden, surprise filing on a Sunday/weekend is unlikely to be lost on many given that nine-and-a-half years ago it slammed Mr Izmirlian and his executive team for doing exactly the same thing after it failed to complete the multi-billion Baha Mar mega resort on time and on budget.

In a statement responding to CCA Construction Inc’s Chapter 11 move, Mr Izmirlian accused the Chinese state-owned contractor of “hiding” behind US bankruptcy protection law to avoid having to pay him $1.642bn in damages and post a $1.9bn bond to pursue overturning that award via the New York State Supreme Court’s appeals division.

Reiterating that he secured a near-total win in his original fraud and breach of contract claim, the Lyford Cay resident voiced optimism that both himself and his BML Properties vehicle will prevail in their legal battles with CCA Construction Inc and its Bahamian affiliates before both the New York Supreme and now-New Jersey federal bankruptcy courts.

Attacking the Chinese contractor’s stealth move to file for Chapter 11 protection for its US arm, Mr Izmirlian blasted: “This is just another example of CCA, and its multi-billion-dollar parent company China State Construction Engineering Corporation (CSCEC), attempting to evade responsibility for its actions by hiding behind a Chapter 11 proceeding.

“I am confident that both the bankruptcy judge and the New York appellate court will see CCA for what it is: A company fraudulently managed by bad actors. We will take every step necessary to enforce our rights against CCA and all those who orchestrated CCA’s frauds, including its parent, CSCEC.”