Minister of State for Legal Affairs Damian Gomez said yesterday that he is “concerned” by reports that Baha Mar CEO Sarkis Izmirlian is prepared to commit $200 million into the stalled Cable Beach resort.

While he was careful not to get into specifics, Gomez seemed alarmed by the reports, questioning where Izmirlian would find such a large sum of money.

“If you didn’t have it last week, where did this money come from?” asked Gomez when called for comment.

Since filing for Chapter 11 bankruptcy in Delaware, Baha Mar has made it clear that it is financially challenged and unable to pay hundreds of creditors or its over 2,400 employees.

American attorneys for Baha Mar reportedly told a U.S. court on Thursday that Izmirlian was willing to commit the money, though they did not detail how.

“To say that I’m going to bring $200 million, I have to see what else they are talking about,” Gomez said.

When asked if the government had any idea where the money was coming from, he said, “None. That would be one of the concerns.

“I don’t know. I’m not sure. Is it real?

“He hasn’t said it himself. His lawyer said it.”

The developer of the multi-billion dollar resort is involved in a dispute with its contractor, China Construction America (CCA) Bahamas.

It filed for Chapter 11 bankruptcy in the U.S. district of Delaware on June 29.

Baha Mar attempted to reach a deal with its lender, the Export-Import Bank of China and CCA during negotiations in Beijing, China last week, but those talks fell through. The Guardian understands that CCA agreed to a project completion date of October 31. But it set a condition: Baha Mar must pay it the $70-plus million owed for already completed work.

The parties reportedly agreed to penalties for late completion and they agreed to bonuses for early completion. A source close to the matter said Izmirlian asked the bank for an additional $600 million to complete the project and deal with operational expenses. The bank was willing to provide this additional funding but was unable to receive a guarantee from the developer. Gomez said if Izmirlian had an extra $200 million and had agreed to the guarantee, the development “would have been further ahead”.

“I don’t know where this takes us,” Gomez said. “We will watch and wait to see the reaction of the other parties.”

Baha Mar is currently involved in talks with CCA in China, in an attempt to reach a deal.

Gomez said the government is carefully observing those talks.

“We are waiting for the main stakeholders to see if they can reach agreement,” he said.

“We are not going to attempt to prejudice those discussions.”

Last week, the attorney general filed a winding up petition against Baha Mar seeking to bring the company under the control of the Bahamian courts. The government is asking for the appointment of a provisional liquidator to manage Baha Mar’s affairs. The government is proposing that three professionals from PricewaterhouseCoopers be appointed provisional liquidators for Baha Mar. A Supreme Court justice will hear the petition on July 31.

When asked if the appointment of a provisional liquidator will affect current negotiations between Baha Mar and CCA, Gomez said it depends on Izmirlian.

“Negotiations with the principle of Baha Mar may still continue, but It depends on what his posture is,” Gomez said.

Meantime, Gomez said he is preparing for the July 31 hearing. He also dismissed reports that the U.S. Federal Bureau of Investigation (FBI) is in the country investigating Baha Mar.

“I have no idea what the FBI is doing or alleged to be doing,” he said.

“I heard somebody say that loosely yesterday in a conversation but I don’t know anything about it.”