Last Friday, Prime Minister Perry Christie offered the public the encouraging news that Attorney General Allyson Maynard-Gibson would be returning to Beijing over the weekend to resume talks on the future of Baha Mar. Christie said he remains hopeful that the talks will come to a successful conclusion. Thanks in no small part to the prime minister, whether we like it or not, the short-term economic prospects of this country remain tied to the fate of the dormant giant on Cable Beach.
In his address, Christie added that top executives from all of the major stakeholders will be present in Beijing, and it would be helpful for Baha Mar's chief decision maker, CEO Sarkis Izmirlian, to be there also.
"If no agreement is reached, there will still be the option of a restructuring and relaunch of the project under the authority of a provisional liquidator and the supervision of our Supreme Court, if the court is minded to so order after hearing from all sides," he said.
"The preferred solution, however, would obviously be an amicable out-of-court settlement between all the parties."
We are not so sure about the wisdom of this last statement.
Christie should keep in mind that Baha Mar decided to seek bankruptcy protection in the United States without giving the government notice. At the time the surprise announcement came, it was expected that Izmirlian was about to sign a deal with his Chinese partners to see the project move forward. Over the ensuing weeks Baha Mar issued several belligerent and aggressive statements to the media. Take, for example, what happened when the government stepped in to pay the resort's workers for the current pay period out of fear the company was set to terminate them as a result of the continuing dispute.
A delay in payment led the resort to make the following statement: "Baha Mar finds it disgraceful that the salaries due Baha Mar employees have not yet been paid. Baha Mar was fully prepared to pay these salaries in a timely manner having received approval from the U.S. court under Chapter 11 to do so.
"The government, however, saw fit, apparently for its own reasons, to participate in the obstruction of this process and has to date been unable to deliver on its promise regarding Baha Mar citizens."
This last reference was to the attorney general's opposition to the enforcement of a U.S. court ruling in The Bahamas, citing the preservation of the nation's sovereignty, among other reasons.
As we have said before, the Progressive Liberal Party (PLP) as the government should be taking the long view in this matter. Regardless of what solution may "seem" advantageous in the short term, it should not be considering continued partnership with a company that is not able to get along with its funder, builder and the government of The Bahamas, which has given it $1.2 billion in concessions, while also running out of money before the project was finished.
Finding a new leader for the Cable Beach project will take time and a continued fight in the courts. But if that is what is in the best interest of the Bahamian people, then that is the course of action that must be taken.
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