With Baha Mar’s developers and its general contractor, China Construction America (CCA), still involved in talks in Beijing, Baha Mar has filed for a critical extension in its objection deadline regarding CCA’s motion to throw Baha Mar’s Chapter 11 bankruptcy cases out of Delaware’s bankruptcy court, arguing that successful negotiations could render further legal action in the U.S. bankruptcy courts “moot”.

Baha Mar’s counsel argued that the extension is “critical” in ensuring that the debtors’ “full resources and attention” go toward the ongoing negotiations in China to increase the odds of a successful resolution between Baha Mar’s developers and the Export-Import Bank of China (CEXIM) following an impasse between Baha Mar and CCA.

“The debtors believe it is critical that their full resources and attention be dedicated and devoted to these negotiations in order to maximize the prospects for a consensual resolution.

“If a resolution is reached, the dismissal motion, suspension motion, the 2004 motion and the pending hearing on the winding up application in The Bahamas, scheduled to commence on July 31, 2015, would likely be rendered moot. Given that the hearing in The Bahamas is scheduled for July 31, 2015, time is of the essence with respect to the negotiations,” reads the motion.

Northshore and its affiliated debtors received a boon last week when Delaware Bankruptcy Judge Kevin Carey denied CCA's motion to shorten notice regarding the hearing on CCA's suspension motion, which allowed the debtors to avoid

“dedicating substantial resources” to opposing the suspension motion, which would have distracted their focus and attention from the pending negotiations in Beijing.

Following that decision, Baha Mar’s counsel pushed CCA to consent to an extension of the objection deadline for the dismissal motion. However, CCA refused.

Baha Mar filed for Chapter 11 bankruptcy protection in Delaware’s bankruptcy court under its affiliate Northshore Mainland Services Inc. on June 29.

CCA last week filed a motion to dismiss with prejudice Baha Mar’s Chapter 11 bankruptcy cases before the Delaware court on the grounds that the filings for U.S. protections amounted to a “bargaining chip” in negotiations between the Baha Mar’s developers, its general contractor and the Bahamian government.

At the time, CCA charged that The Bahamas remained the only acceptable jurisdiction for resolution of the legal disputes surrounding Baha Mar. This, CCA argued, was even more evident in the wake of the Bahamian government’s decision to file a winding up petition in the Bahamian Supreme Court earlier this month.

Bahamian Supreme Court Justice Ian Winder last week denied Baha Mar’s application for recognition of its Chapter 11 bankruptcy proceedings in Delaware. Winder will further hear the winding up petition on July 31. If successful, the winding up exercise will bring Baha Mar’s assets under the control of the Bahamian court.

Exhibit B of Northshore’s motion to extend consists of a correspondence between Pauline Morgan, representing CCA, and debtors’ counsel Tyson Lomazow, in which Morgan dismisses the possibility of extending the response deadline beyond August 4, given the fact that CCA is scheduled to take the deposition from Northshore Mainland Services Inc. and its affiliated debtors and debtors in possession on August 6.

Baha Mar’s official committee of unsecured creditors has since joined the debtors in requesting an extension. Acting U.S. Trustee Andrew R. Vara appointed the following creditors to the committee earlier this month: Yates-Osprey, Purchasing Solutions International Inc., Schadler Kramer Group, LLC. Dba SK&G, Suddath Global Logistics Bahamas, AECOM Technical Services, Terracon Consultants Inc. and SBE Hotel Management.

Despite the considerable number of local creditors, no Bahamian companies are directly represented on Baha Mar’s official committee of unsecured creditors, with joint venture Yates-Osprey serving as the closest thing to Bahamian representation on the committee.

The committee earlier issued a notice of appearance and demand for service of papers relating to Baha Mar’s ongoing Chapter 11 cases and is scheduled to have its next meeting on August 3.