Baha Mar Ltd. yesterday filed for bankruptcy in the U.S., and among the supporting documents was a consolidated list of creditors holding the 20 largest unsecured claims against Baha Mar Ltd. totaling upward of $120 million.
Documents obtained by Guardian Business revealed that hitherto unknown debtor Northshore Mainland Services Inc. (Northshore) along with certain of its affiliates under the heading of Baha Mar Ltd. filed for chapter 11 bankruptcy in the U.S' Bankruptcy Court for the District of Delaware. Although the list of top 20 creditors contains a mix of Bahamian and U.S.-based companies, the top three creditors, China Construction America (CCA) Bahamas, the Bahamas Electricity Corporation (BEC) and Yates-Osprey Joint Venture, are all Bahamian entities.
CCA Bahamas Ltd. held the lion's share of the outstanding claims against Baha Mar, with a hefty claim of $72,635,100. BEC follows with a $19.5 million claim, while construction firm Yates-Osprey is owed $5,281,681.
Other Bahamian firms cited in the top creditor list include: TBI Caribbean Co Ltd. ($2,353,638); Cable Bahamas ($1,435,631); Cable Beach Resort Association ($1,219,372); and Island Site Development ($1,153,050).
However, these creditors represent only the tip of the iceberg. The initial filing indicates that the complete list of creditors includes 1,000 to 5,000 creditors.
The filing further revealed Baha Mar's organization structure, which indicates that Northshore is a subsidiary of Baha Mar Operating Company Ltd., which in falls under Baha Mar Ltd. At the top of the chain, however, is BML Properties Ltd.
In a shocking move, given the recent pronouncements of Prime Minister Perry Christie and others in his Cabinet, Baha Mar Ltd. CEO and Chairman Sarkis Izmirlian announced yesterday that the company and its associated entities were voluntarily filing for Chapter 11 bankruptcy. It came just over a week after Christie stated that he had received "encouraging" news regarding the long standing impasse between general constructor CCA and Baha Mar Ltd.
A press release issued yesterday afternoon stressed that the move is necessary to ensure that the long delayed resort would open as soon as possible. In the release, Izmirlian repeatedly blamed general contractor CCA for missed construction deadlines, which in turn led to multiple postponed openings at considerable cost to Baha Mar Ltd.
"Unfortunately, our efforts, as well as those of the Bahamian government, have not accomplished that objective. Construction on the project remains incomplete and, consequently, we have not been in a position to set a revised opening date. Thus, the Chapter 11 process is the best path for Baha Mar to now undertake," Izmirlian stated.
The entities concurrently filing for Chapter 11 under the U.S. Bankruptcy Code in the District of Delaware with respect to Baha Mar are: Northshore Mainland Services Inc. (9087); Baha Mar Enterprises Ltd.; Baha Mar Entertainment Ltd.; Baha Mar Land Holdings Ltd.; Baha Mar Leasing Company Ltd.; Baha Mar Ltd.; Baha Mar Operating Company Ltd.; Baha Mar Properties Ltd.; Baha Mar Sales Company Ltd.; Baha Mar Support Services Ltd.; BML Properties Ltd.; BMP Golf Ltd.; BMP Three Ltd.; Cable Beach Resorts Ltd.; and Riviera Golf Ventures Ltd.
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