Comment history

newcitizen says...

You don't get rich or stay rich by betting your own money

On Baha Mar ‘showed contempt to nation’

Posted 2 July 2015, 12:52 p.m. Suggest removal

newcitizen says...

They already built the road. They built it years ago and the government never paid them. What are you going on about?

newcitizen says...

What are you talking about? There is nothing illegal about declaring bankruptcy, or not warning people before hand.

newcitizen says...

Tal, sources from the Bahamar board even stated that this was something done in the dark and that they did in fact blindside the government

newcitizen says...

Tal, what money did they accept from the taxpayers? Are you talking about the money they were owed for the road work they did?

newcitizen says...

Tal, that's not how it works. Just like you don't warm people the days before they are getting fired. There are a number of legal options for all of the creditors if they knew this was going to happen. You keep this stuff secret and any accountants or lawyers working on it would not be saying a word to anyone. As well as the fact that much of the information presented in a filing is boiler plate and will be supplement throughout the process with better and more refined details. Bankruptcy is a process, it isn't just all laid out on the first day.

They also did not wiggles millions from taxpayer, that was money that was owed to them. The government was trying for year to wiggle out of paying them.

What do you really expect from a special prosecutor? First no one is being prosecuted, so you might want to say special investigator. What do you expect to find?

newcitizen says...

To be fair, they would have been given absolutely no indication of Bahama r filling for Chapter 11. Bahamar would have been extremely tight lipped about it. Telling anyone that you are about to enter into bankruptcy is not something you do. Some companies may use it as a negotiating tactic, but in this case I am pretty sure everyone was in the dark expect the Bahamar board.

newcitizen says...

The road works were not completed by CCA, they were done by Bahamar who contracted the majority of the work to ISD and Bahamas Hot Mix

On Baha Mar files for bankruptcy

Posted 1 July 2015, 12:38 p.m. Suggest removal

newcitizen says...

Chapter 11 Bankruptcy is for restructuring and gives the company some relief from debt obligations during that period. It does not mean that all of it's debts will be unpaid, infact most companies leave chapter 11 with the same principles involves and the debts on the books are paid. This is essentially a pause while they figure out how to move forward.

Many people seem to be thinking this is Chapter 7 bankruptcy, which is a liquidation event and the assets are split up to satisfy the debts. Atlantis went through Chapter 11 only a few years ago and exited just fine.

On Baha Mar files for bankruptcy

Posted 1 July 2015, 12:35 p.m. Suggest removal

newcitizen says...

They filed for Chapter 11, which is a type of bankruptcy used to restructure debts and gives relief of some liabilities during the process. Chapter 11 is intended to be used for a company to be able to exit the other side without have to divest of it's assets. Kerzner International entered Chapter 11 bankruptcy a couple years ago, which led to Brookfield taking over the Atlantis and Ocean Club portion of the company. The company left that bankruptcy in a healthy state. Bankruptcy as most people take it to be is Chapter 7, which results in the divestment of assets to pay creditors.

The people who are most at risk here are unsecured creditors, which may involve many of the Bahamian sub contractors depending on who they had their contracts with, and secured creditors who sit at the bottom end of the creditors list. Some company debt can be wiped out in Chapter 11 although in a lot of cases the principle of the debt remains and just the interest is waived.

This may take a long time to get through the court system, but in the meantime the company can still operate and it gives Bahamar access to different credit facilities to get cash to finish construction.

Chapter 11 indicates that the company will exit bankruptcy in a healthy state, chapter 7 would indicate failure.