As Baha Mar and its pursuers - China Construction America (CCA) and the Export-Import Bank of China (CEXIM) - jockey for the inside lane amid the flurry of motions and pleadings before U.S. Bankruptcy Judge Kevin Carey in Delaware, the two sides agree that the megaresort, multibillion-dollar project is more than $300 million short. They also agree that it is 97 percent complete and that the stalled Cable Beach development is the primary asset owned by the debtors.

Ahead of an important hearing scheduled for last Friday, the parties filed a document listing those agreed-upon facts as well as facts which are still in contention. One of the more noteworthy facts stipulated shows that negotiations for the post-bankruptcy filing financing mechanism began much earlier than it might appear. This adds to the evidence that, despite its partners being surprised by the filing, Baha Mar had already been preparing for the bankruptcy option.

The parties stipulated that in mid-June 2015, the debtors and their advisors began negotiations with the developer regarding debtor-in-possession financing, and that the debtors ultimately concluded (after consultation with their advisors) that the developer's proposed post-petition financing facility was the best post-petition financing option available to them. Jurisdiction The parties also stipulated that New York law governs disputes arising under the Main Construction Contract, and the venue provision contained therein provides for New York as well.

In addition, under specified circumstances set forth therein, the Main Construction Contract requires alternative dispute resolution procedures to be attempted before proceeding to litigation. The parties stipulate that by an Assignment and Assumption Agreement, dated December 8, 2010, the respective rights and obligations under the Main Construction Contract were assigned and assumed by BML and CCA Bahamas, and that New York law also governs the assignment.

The question of jurisdiction also arises in another set of stipulated facts relating to the debenture, pledge of shares and charge over shares, which the parties agree are all governed by Bahamian law while some of the agreements ancillary to the facility agreement are governed by either English, British Colombia, Texas or New York law. They stipulate that the debenture provides that the parties to the debenture, including CEXIM and the Bahamian debtors, agreed that the courts of The Bahamas have exclusive jurisdiction to settle any dispute arising out of or in connection therewith. The parties also stipulate, though, that some of Baha Mar's creditors are not subject to the jurisdiction of the Delaware court, that the majority of Baha Mar's employees are located in The Bahamas, and that as of June 29, 2015, Northshore is the only debtor with employees in the United States.

Land

The parties agree that the debtors do not own any real property in the United States. They stipulate that the government of The Bahamas granted to the debtors certain of the debtors' real property located in The Bahamas; that the government currently owns certain parcels of land upon which portions of the project are situated; and that the debtors require permits, licenses and other approvals from the government of The Bahamas for the completion of the project and its operation after completion. Debtor in possession The parties also stipulate that Sarkis Izmirlian - the developer - is the chief executive officer and chairman of some of the debtors, and that he owns and controls the DIP (debtor-in-possession) lender.

It is agreed that in the bankruptcy cases, subject to final court approval and subject to the terms and conditions set forth in the DIP motion, the DIP lender committed to provide up to $80 million in debtor-in-possession financing, and that the debtors will need financing beyond the proposed $80 million debtor-in-possession facility to complete construction of the project. It is also accepted as fact that the debtors were unable to obtain entry of a court order in The Bahamas extending the automatic stay to secured and unsecured creditors in The Bahamas within seven days of the petition date, which effectively functioned as an additional condition precedent to funding under the DIP facility.

It is an accepted event of default under the interim DIP order and the DIP term sheet if a court in The Bahamas does not enter an order extending the automatic stay to secured and unsecured creditors in The Bahamas within seven days of the petition date. It is equally accepted that the DIP lender has not received the approval of the Bahamas Investment Authority or the approval of the Central Bank of The Bahamas, which are both "Conditions Precedent to Closing Date" in the DIP Term Sheet. It is therefore agreed that the debtors do not currently have any alternative financing in place except for the financing described in the DIP motion and DIP term sheet.

Expectations

The Supreme Court has indicated that, on September 4, 2015, it expects to deliver its judgment on the respondents' motion to strike out or dismiss one or more of the winding up petitions (or parts thereof), including, without limitation, the winding up petitions for the dismissed entities, and to the extent that any winding up petition is neither struck out nor dismissed, whether or not a provisional liquidator in respect of that petition will be appointed.

Talks between the Department of Labour and attorneys representing Diamonds International over the retailer's contentious compensation agreement following the private sector minimum wage increase are set to resume today, according to Director of Labour Robert Farquharson.

Farquharson said he anticipated having further discussions with the retailer's attorneys today after notifying them of the Department of Labour's legal opinion on the agreement last week, charging that Diamonds International had taken unilateral action and placed some of its employees under economic duress by requiring them to sign an agreement that cuts back on commissions.

The compensation agreement for existing sales associates contained clauses factoring in the new $5.25 hourly wage but introduced stipulations for the commissions employees took home at the end of the month. Those signing the agreement would be required to obtain at least $160 in commissions before receiving any monthly commissions, which will then be deducted from their monthly commissions. The new minimum wage, which came into effect on August 15, results in a monthly wage increase of $240.

While a Diamonds International spokesperson denied that the agreement violated contract law and stated that workers would not take home less in commissions after signing the agreement, Farquharson advised the retailer to seek immediate legal advice, stating that its actions constituted a "a breach of the fundamental principles of the law on contract".

"Upon achieving this amount of commissions, as calculated in the manner determined by the company from time to time in the company's sole discretion, [the employee] will receive only the balance of my commissions exceeding the [$160] which is the amount specified above," reads the new compensation agreement.

On Thursday, Guardian Business spoke with several Diamonds International employees, many of whom expressed frustration and disappointment with their employers, who derided the compensation agreement as a method of curbing costs in light of the minimum wage increase. The employees asserted that they had been notified of the updated agreement on Wednesday and were given until the end of business hours on Thursday to sign and submit the agreement. While Guardian Business understands that at least one employee had signed the agreement as of Thursday, Farquharson yesterday stated that many of the employees still refused to sign the agreement.

TROPICAL STORM FRED INTERMEDIATE ADVISORY NUMBER   3A
NWS NATIONAL HURRICANE CENTER MIAMI FL       AL062015
200 PM AST SUN AUG 30 2015

...FRED CONTINUES TO STRENGTHEN...
...OUTER RAIN BANDS NEARING THE EASTERNMOST CAPE VERDE ISLANDS...


SUMMARY OF 200 PM AST...1800 UTC...INFORMATION
----------------------------------------------
LOCATION...14.1N 20.7W
ABOUT 195 MI...315 KM ESE OF PRAIA IN THE CAPE VERDE ISLANDS
MAXIMUM SUSTAINED WINDS...60 MPH...95 KM/H
PRESENT MOVEMENT...NW OR 310 DEGREES AT 16 MPH...26 KM/H
MINIMUM CENTRAL PRESSURE...1000 MB...29.53 INCHES


WATCHES AND WARNINGS
--------------------
CHANGES WITH THIS ADVISORY:

None

SUMMARY OF WATCHES AND WARNINGS IN EFFECT:
A Hurricane Warning is in effect for...
* Cape Verde Islands

A Hurricane Warning means that hurricane conditions are expected somewhere within the warning area, in this case within the next 24 hours.  Preparations to protect life and property should be rushed to completion.

For storm information specific to your area, please monitor products issued by your national meteorological service.


DISCUSSION AND 48-HOUR OUTLOOK
------------------------------
At 200 PM AST (1800 UTC), the center of Tropical Storm Fred was located near latitude 14.1 North, longitude 20.7 West. Fred is moving toward the northwest near 16 mph (26 km/h) and this general motion is expected to continue through Tuesday.  On the forecast track, the center of Fred is expected to move through the Cape Verde Islands on Monday through early Tuesday.

Maximum sustained winds have increased to near 60 mph (95 km/h) with higher gusts.  Additional strengthening is expected during the next day or so, and Fred is forecast to become a hurricane before reaching the Cape Verde Islands on Monday.

Tropical storm force winds extend outward up to 60 miles (95 km) from the center.

The estimated minimum central pressure is 1000 mb (29.53 inches).


HAZARDS AFFECTING LAND
----------------------
WIND:  Tropical storm conditions are expected to first reach the coast within the warning area by late tonight.  Hurricane conditions are expected within a portion of the warning area by Monday morning.

STORM SURGE:  A storm surge is expected to produce coastal flooding in areas of onshore winds in the Cape Verde Islands.  Near the coast, the surge will be accompanied by large and dangerous waves.

RAINFALL:  Fred is expected to produce total rain accumulations of 3 to 5 inches over the Cape Verde Islands, with possible isolated maximum amounts of 8 inches. These rains could produce life-threatening flash flooding and mudslides.

WITH NO team in the grand finale - the men's 4 x 400m relay - Team Bahamas closed out competition at the 15th IAAF World Championships with two competitors in the men's high jump final on Sunday at the Bird's Nest Stadium.