The government has determined that it would be "inapporpriate" to proceed with provisional liquidators from PricewaterhouseCoopers (PwC) after PwC notified the government it had a conflict of interest given its previous involvement with China State Construction Engineering Corporation (CSCEC).

The government's legal counsel made the revelation in the Supreme Court as Justice Ian Winder heard its application to wind up Baha Mar to bring it in under control of Bahamian courts. The government listed Prince Rahming, Gowon Bowe and Garth Galow of PwC as prospective liquidators.

Attorney Peter Knox, who heads the government's legal team in the winding up petition, said PwC indicated in a letter on Thursday that it had previously acted for the CSCEC, representing a potential conflict of interest. Knox told the court that the government has engaged three prospective provisional liquidators from Ernst & Young Chartered Accountants: Michele Thompson, Karen Hutchison and Roy Bailey.

Knox said this was news to the government as there was no previous indication of a conflict or potential conflict of interest. According to Knox, CSCEC previously expressed "reservations" about PwC acting as provisional liquidators, but the company said today that it would not object to PwC assisting the government in the winding up proceedings.

The government moved to wind up the troubled resort in recent weeks after Baha Mar filed for Chapter 11 bankruptcy protection in the U.S. district of Delaware last month. The government has said the move was with a view to complete the stalled project on Cable Beach. Maurice Glinton, legal counsel for Baha Mar, said that in affidavits, Bowe, Galow and Rahming stated that they carried out conflict checks. He expressed surprise that the court was now hearing of a potential conflict, calling it an "embarrassment".

The government requested an adjournment until August 10 given that the provisional liquidators had been changed. However, Glinton argued for a three-week adjournment to allow for the proper enquiries to be made on the new provisional liquidators. He said this would aid in ensuring no further embarrassment to the court. Winder adjourned the winding up hearing to August 19. Outside of court, Knox declined to speak to the media.

Glinton told reporters the entire winding up process has been "lacking in good faith, and that indeed it has been abusive". Baha Mar's application to appeal Winder's refusal to recognize U.S. orders for creditor protection in The Bahamas last Wednesday will be heard on August 4.

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