By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A “thwarted” buyer of Abaco’s Treasure Cay development is seeking to obtain evidence from its new developer to aid his pursuit of multi-million dollar lawsuits against both the former owner and the Government.

Dr Mirko Kovats, a Lyford Cay homeowner with permanent resident status in The Bahamas, is seeking judicial assistance from the north Florida federal court to obtain documents from GreenPointe Holdings, a Jacksonville-based developer, which last September secured a Heads of Agreement with the Davis administration after purchasing the project from the Meister family.

The controversial Austrian financier, in legal filings on Monday that have been obtained by Tribune Business, made clear he is especially interested to compare the terms GreenPointe and its principal, Edward Burr, obtained from both the Government and the Meisters to determine if they are more favourable than those offered to himself and his company, LM Property Development.

In particular, Dr Kovats said he wants to learn whether GreenPointe was required to post the same performance bond that the Government demanded he lodge as a security guaranteeing his financial obligations were it to approve his now-rejected Treasure Cay purchase. He has previously alleged the initial $5m bond was first doubled to $10m, then raised further to $25m or 10 percent of the project’s $250m value.

And, to further support his Judicial Review challenge and startling $3bn damages claim against the Government, the Austrian financier is also urging the north Florida court to order GreenPointe Holdings to hand over all communications with the Davis administration involving Treasure Cay; the Heads of Agreement and all other signed contracts; plus all business and development plans for together with real estate valuations.

Dr Kovats, in a March 3, 2025, affidavit alleged that the Bahamian judicial system has “still not acted” on his Judicial Review claim that was launched against the Government almost two years ago on October 27, 2022. However, no explanation is given for why the case has not moved, and it is possible that the Supreme Court refused to grant permission for it to proceed as Judicial Reviews are supposed to be heard quickly.

Asserting that he had previously reached an agreement with Treasure Cay Ltd, the Meister family company that owned the Abaco-based development, to acquire all but one of its shares, he alleged: “While the Government of the Bahamas has thwarted my attempts to purchase the Treasure Cay property, and its court has still not acted on my application for a Judicial Review, I subsequently initiated a lawsuit against the Meister family.

“That lawsuit remains ongoing. Since doing so, GreenPointe Holdings, with its principal address in Jacksonville, and its registered agent in Tallahassee, has apparently purchased the Treasure Cay property and intends to develop it. GreenPointe has apparently entered into an agreement to acquire the Treasure Cay Property with the Meister family.....

“Indeed, the Prime Minister of The Bahamas, Brave Davis, was directly involved in the negotiations, apparently. Although the Bahamian government and the Meister family thwarted my efforts to buy the Treasure Cay property, GreenPointe has been able to reach a Heads of Agreement - essentially a pre-investment agreement with the Bahamian Government - to develop the Treasure Cay property,” Dr Kovats added.

“GreenPointe is now working on developing the Treasure Cay property. Insofar as the Government of The Bahamas has blocked our attempts to purchase the Treasure Cay property because I am a foreigner, I am surprised that GreenPointe was able to purchase the property.

“In addition, I had a contract with the Meister family to buy the property, but they reneged on that deal. Therefore, discovery from GreenPointe will further my lawsuits against both the Government and the Meister family.” 

Tribune Business previously reported that the Austrian financier had initiated legal action against the Meisters and their company, Family Adventure Holdings, demanding they uphold the February 2021 sales contract with him or, in the alternative, return his $2.233m deposit equivalent to 10 percent of the purchase price.

Dr Kovats, meanwhile, outlining the rationale for his judicial assistance request, asserted: “Documents regarding a performance bond or similar guarantee will be used to compare my situation to GreenPointe’s. The Heads of Agreement will be used to see the terms and conditions that GreenPointe obtained from the Government.

“The documents regarding the purchase of the property will be used to compare the deal GreenPointe received to what I contracted for with the Meister family, which is important to my breach of contract claim.” And he argued that full disclosure “will shed light on why the Government and the Meisters blocked” his deal to acquire Treasure Cay.

The Austrian financier has made his move within six months of last September’s $177m Heads of Agreement signing, through which Mr Burr and GreenPointe Holdings pledged to develop Treasure Cay into a mixed-use resort and residential community, starting with infrastructure restoration that includes the marina harbour.

Tribune Business has recently received mixed progress reports from various Treasure Cay homeowners and Abaco residents, with some voicing impatience and concern over the seeming lack of on-site activity by the developer. Some have even questioned whether the acquisition from the Meisters has closed, but others assert that GreenPointe is merely waiting for the necessary environmental, construction and other permits.

Mr Burr, GreenPointe’s chairman and chief executive, has not returned Tribune Business’s call seeking comment and a potential interview despite a message and contact number being left with his executive assistant. However, a January 23, 2025, update issued by the developer to Treasure Cay residents affirmed the project is a “primary focus” and that it was working to obtain the required government approvals.

Promising that it is “dedicated to rejuvenating this beloved destination”, and that “a bright future awaits”, GreenPointe Holdings said it was working with Bahamian consultancy, BRON, to develop the necessary environmental studies and apply for the relevant permits. It is also working with other consultants on project design and the marina.

“GreenPointe has engaged BRON, a Bahama-based environmental consultancy, to secure the necessary environmental approvals. These approvals will ensure the redevelopment meets all regulatory standards while safeguarding the natural beauty of Treasure Cay,” GreenePointe said.

“Additionally, the Department of Environmental Planning and Protection (DEPP) will soon visit Treasure Cay to work with GreenPointe to ensure a balance between responsible development and environmental preservation.

“GreenPointe is collaborating with Cummins & Cederberg, marina design experts, to restore Treasure Cay’s iconic marina. The renovation will involve replacing bulkheads and enhancing navigational channels to ensure safe and efficient water access. Upon completion, the marina will once again serve as a vibrant hub for boating and marine activities in North Abaco, benefiting the local economy and lifestyle,” it added.

“OBMI, the design team working on the project, is making significant progress on phase one of the redevelopment. While specific details remain forthcoming, GreenPointe has confirmed that the plans are moving ahead smoothly. Phase one will focus on creating a balanced mix of residential, commercial and recreational spaces, laying the groundwork for Treasure Cay’s future growth.”

Pledging that a ground-breaking for the project will occur this year, GreenPointe said that besides redeveloping Treasure Cay’s golf course it is also working with “Caribbean Civil Group, Water and Sewerage Corporation and Bahamas Power & Light (BPL) to finalise critical infrastructure upgrades, including utilities and services”.

“2025 is off to a strong start, and we’re thrilled with the progress in revitalising Treasure Cay,” Steve Griggs, development manager at GreenPointe, said. “We’ve engaged a team of expert consultants to guide the planning and permitting phases, paving the way to break ground later this year.” 

However, GreenPointe will now have to deal with Dr Kovats’ evidence demands. The Austrian, recalling how the Government via the Bahamas Investment Authority (BIA) rejected his Treasure Cay purchase, alleged: “Among other things, the Government has demanded a $25m performance bond for the purchase of private property, even though no such requirement exists for the purchase of private property.

“Dr Kovats has made personal guarantees regarding his development. For unknown reasons, Government officials have also issued correspondence to third-parties saying Dr Kovats will never receive approval to buy the Treasure Cay property. Shockingly, the deputy prime minister of The Bahamas himself [Chester Cooper] contacted the Meister family directly regarding Dr Kovats’ request for a letter of no objection.

“In an effort to moot the Government’s intransigence, Dr Kovats asked the Meister family to assign the rights to a Bahamian citizen, per applicants’ agreement to purchase the Treasure Cay property interests. After the Meister family refused without explanation, LM Property Development filed a lawsuit against the Meister family for breach of contract.”

 Tribune Business also previously reported how Dr Kovats is also embroiled in separate litigation over his ambitions to acquire the South Ocean resort property in New Providence, as well as a large investment property in southern Long Island close to the cruise port proposed for that island.

Amid previous assertions that he has a tendency to sit on property in The Bahamas and do nothing to develop it, the financier has also attracted controversy back home throughout his business and investing career, despite building his publicly-listed industrial group, A-Tec Industries, into a conglomerate that once featured over 70 companies and more than 10,000 employees, with turnover pegged at more than one billion euros.

Numerous companies he was involved with early in his business career became insolvent, and Dr Kovats has faced numerous civil lawsuits, being criminally indicted twice. He was sentenced to six months’ probation in 2000 by the Vienna High Court over the bankruptcy of a nightclub he had invested in. Dr Kovats was also charged over another nightclub insolvency in 2007, although he was never convicted.

Tribune Business’s own research also found that Dr Kovats and a fellow executive were fined by Austrian regulators in 2012 for providing misleading information to the capital markets, thus harming investors. Following a two-year period of turbulence that began in 2011, A-Tec moved to restart business activities in 2013, after undergoing a reorganisation.