Lawsuits Filed by BML Properties Against CCA in the Baha Mar Dispute Conflict
Welcome to the high-stakes battle between BML Properties Ltd and China Construction America (CCA) over the lavish Baha Mar resort, nestled in the sun-soaked Bahamas. This standoff has seen BML Properties filing winding-up petitions in the Supreme Court of the Bahamas, aiming to liquidate CCA-tied entities after the CCA group's December bankruptcy filing in the US.
The explosive court case boils down to accusations of fraud, breach of contract, and financial misconduct on CCA's part, all contributing to the project's untimely collapse. BML Properties paints a grim picture of the Bahamian saga, with a court order for CCA to repay a whopping $1.6 billion due to numerous deceitful acts during the project takeover in 2015.
The assessment of damages reached nearly $2 billion, owing to high pre-trial interest rates in New York, according to BML Properties' counsel[4]. CCA has since counter-attacked, alleging that BML Properties' own shortcomings and delays crippled the resort's opening[1].
Today, the resort lies in the capable hands of Hong Kong-based Chow Tai Fook Enterprises, which boasts investments in various international hospitality ventures, including Australia's Star Entertainment Group, Vietnam's Hoiana, and Macau’s SJM[2].
This drawn-out legal dispute stems from the original developer’s claims that CCA flouted an Investors’ Agreement by not meeting construction deadlines[1]. During the 2008 financial crisis, a massive $2.45 billion funding was secured from China’s Exim Bank, which stipulated CCA as the general contractor and allowed the import of up to 8,000 Chinese workers for the project[1].
Jacob W. Buchdahl, BML Properties' legal eagle, delved into the case's nitty-gritty during a recent podcast, revealing his strategy to narrow the focus on late-stage fraudulent acts and contractual breaches readily distinguishable from the fraud allegations. Expert testimony, internal communications, and staggering damages - twice over BML Properties’ initial damages - have been at the heart of the trial[4].
Despite CCA's appeal and teetering financial position, Buchdahl remains confident about enforcing the judgment and upholding justice for his client[4].
Baha Mar, initially set to open its doors in December 2014, faced a series of delays that ultimately forced BML Properties to file for bankruptcy in June 2015, despite the project being 97% complete[3]. Reports suggested pointers to substandard workmanship, with CCA employees smuggling plans and documents off the premises[3].
In response, the Bahamian government took drastic action, rejecting the bankruptcy filing and compelling CCA to bear the project's financial burdens. Construction halted for over a year before striking a deal with CCA to resume work and find a new buyer for the doomed resort[3].
Fast forward to today, and Hong Kong-based Chow Tai Fook has taken the helm, acquiring the project at an undisclosed price[2]. The intricate dance between BML Properties and CCA continues, with the former seeking liquidation of CCA-abetted entities and the latter defending its assets.
Sources:
- Mitri, A. (2023, March 13). BML Properties Versus China Construction America: The Two Sides of the Story in the Bahamian Saga. The Bahamian Star.
- Nassau Guardian Staff. (2022, February 26). New Owners of Baha Mar Resort. Nassau Guardian.
- Swanswick, D. (2015, June 30). Baha Mar developer files for bankruptcy protection. Financial Times.
- Allewahab, N. (2023, February 24). Keeping your eyes on the prize: Highlights from the Baha Mar trial. Magistrate's Notebook.
Despite the ongoing legal dispute, the resort's prospects for growth in sports and recreational activities are positively impacted by the new ownership of Baha Mar under Hong Kong-based Chow Tai Fook Enterprises. Meanwhile, the unfavorable weather conditions in the Bahamas could potentially affect the attendance and enjoyment of sports events held at the resort.
