By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

A spokesperson for CCA Construction yesterday said the ruling by the New York Supreme Court that awarded Mr Izmirlian some $1.642bn was “wrongful” and the company will continue to have the decision overturned on appeal.

Responding to comments made by Dionisio D’Aguilar, who sat on Baha Mar’s board under the mega resort’s original developer, the spokesperson maintained that BML Properties “own mismanagement” led to its ill-fated bankruptcy.

 “Mr D’Aguilar has come to sound like a broken record. He yet again ignores the important fact that we have a legal right to seek the reversal of the New York trial court’s wrongful decision, which is replete with legal errors,” said a spokesperson for CCA Construction.

“BML Properties’ own mismanagement drove the Baha Mar project into bankruptcy, causing harm to CCA Construction, as well as to CCA Bahamas, CSCEC Bahamas, the Bahamian government, subcontractors and workers. As our efforts continue to overturn the trial court’s decision at the New York Court of Appeals, CCA Construction is simultaneously committed to progressing the chapter 11 case for the benefit of all stakeholders.”

BML Properties Ltd has launched an aggressive legal campaign in US bankruptcy court seeking to hold Chinese state-owned CSCEC Holding Company, Inc. accountable for more than $1.6 bn in debts.

In a series of filings, BML said they are the largest unsecured creditor in the Chapter 11 case  and asked the court to affirm its direct claims against CSCEC, lift the automatic bankruptcy stay to allow enforcement of the New York judgment, and grant permission to sue CSCEC as the alleged “alter ego” of the debtor, CCA.

BML said they obtained the $1.6bn judgment in New York state court just weeks before CCA filed for bankruptcy and warned that unless CSCEC is held accountable, they stand to lose virtually everything — as it holds 99 percent of the case’s non-insider unsecured claims.

BML accused CCA, a US-based affiliate of CSCEC, of operating as nothing more than a “cost centre” for its Chinese parent and claims the bankruptcy is being used to shield CSCEC from liability while draining the estate.

Court filings also accused CCA and CSCECH of working in concert to avoid paying the judgment, and of preparing to offer releases to CSCECH through a Chapter 11 plan without holding the parent company financially accountable.

In response to the most recent filings, Mr D’Aguilar told Tribune Business he is still shocked the Chinese government is choosing to “wiggle and worm” out of paying the $1.642bn damages.

He said their unwillingness to settle the debt is a “red flag” and cautioned against doing business with the Chinese government because to their continued refusal to acknowledge a judgment that has already been lost on appeal.

“This is a sad day for doing business with companies that are owned by the Chinese government. Obviously, if you engage them and go into business with them, and the relationship ends in a divorce like this one, they will do their endeavour best to wiggle out of settling the claims that are being made against them,” said Mr D’Aguilar.

“I can’t imagine. I’m still in shock that a company that’s owned by the government of China continues to wiggle and worm itself out of a judgment against it for breach of contract and fraud, and rather than attempt to settle it, they are displaying no attempt to bring this very unfortunate situation to an end.”