CCA defends position in affidavit

Wed, Jul 22nd 2015, 11:10 AM

China Construction America (Bahamas) has charged that Baha Mar’s assertion that CCA is the reason the multi-billion-dollar resort was delayed twice is “erroneous and inconsistent” with the facts.

In an affidavit filed before the Supreme Court of The Bahamas on July 16, CCA Bahamas Vice President Jun Li defended CCA against “material inaccuracies and misstatements”.

“Further, self-serving characterization of CCA Bahamas as being primarily responsible for the delay of the completion of the project is erroneous and inconsistent with the factual history of the dealing between the parties in connection with the contract,” Jun wrote.

“CCA Bahamas has not had sufficient time to respond to all of the matters, claims, and allegations made against it in the various affidavits filed on behalf of the applicants.

“Going forward, CCA Bahamas intends to more fully respond to such matters.”

CCA Bahamas is Baha Mar’s main contractor.

Baha Mar filed for Chapter 11 bankruptcy in the U.S. district of Delaware on June 29. It is seeking to have those proceedings recognized in The Bahamas so as to gain creditor protection and access to much needed funds. A Bahamian Supreme Court justice is expected to decide today whether to recognize the Chapter 11 proceedings. In an affidavit filed on July 7, Baha Mar President Tom Dunlap said he met with Jun on multiple occasions in early 2015 and “at none of the meetings did the president inform me that CCA would not complete the project on time”.

Baha Mar was originally scheduled to open in December 2014 and later on March 27, 2015.

Dunlap accused CCA of a litany of failures, including missing two opening dates and breaching its obligations. But Jun wrote that CCA has claims against Baha Mar exceeding $100 million.

“CCA Bahamas has over 400 Chinese workers in The Bahamas who are being paid and who are currently unable to work on the project,” he said.

“As a result of the bankruptcy filings, there is currently a stay preventing CCA Bahamas from commencing proceedings in The Bahamas, and elsewhere, against BML (Baha Mar Ltd.) with regard to matters arising in this jurisdiction under the contract.

“Those matters directly relate to The Bahamas and are substantially connected to this jurisdiction.”

CCA claims that Baha Mar has not paid it since February and it is owed approximately $76.6 million in relation to that work.

Jun wrote that CCA was locked out of its offices.

Dunlap has said that because of its missed March opening date, Baha Mar suffered devastating losses.

“As a result, the applicants were forced to cancel months worth of room reservations and group meeting events and provide numerous customers with vouchers, refunds and in certain cases were required to find customers suitable accommodations elsewhere, all at a cost in excess of $6 million,” Dunlap wrote in his affidavit.

“The applicants suffered many other damages as well, including significant harm to the Baha Mar name and reputation.

“The applicants also incurred substantial sunk costs that they must expend once again to open the project.

“In short, the missed opening date of March 27, 2015 was devastating for the applicants.”

On Monday, CCA filed a motion in Delaware seeking to have Baha Mar’s Chapter 11 proceedings dismissed.

“In their attempt to safeguard their position as owners of the project, the debtors have sacrificed the interests of their creditors, the project, the Bahamian people and all other parties in interest,” the motion read.

“Indeed, the debtors’ own pleadings suggest that if the debtors were permitted to continue their insolvency proceedings in the United States, the completion of the project will be substantially delayed and the ultimate outcome of the project will be uncertain.”

CCA is represented in The Bahamas by Sean Moree.

Click here to read more at The Nassau Guardian

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