The government will determine whether it will fund Baha Mar’s $7.5 million payroll for the second consecutive month following negotiations over the coming days, The Nassau Guardian understands.

As previously reported, the government funded Baha Mar’s payroll last month, using a portion of the money it owes the developer to cover its share of the rerouted West Bay Street. A government source who spoke to The Nassau Guardian on condition of anonymity yesterday, said whether the government will do so again next month will be determined by the conclusion of ongoing talks between Baha Mar and its contractor, China Construction America (CCA).

Baha Mar and CCA are at odds over outstanding monies and what the developer claims has been shoddy work by the contractor.

“It depends on how talks progress,” said the source.

As it stands, Baha Mar is not in a position to pay its own staff.

On Wednesday, Supreme Court Justice Ian Winder rejected Baha Mar’s application seeking recognition of Chapter 11 bankruptcy proceedings ongoing in Delaware. The ruling means that the various orders handed down by a U.S. judge after Baha Mar’s bankruptcy filing cannot take effect in The Bahamas. Among other things, the U.S. judge authorized $30 million in funding, which Baha Mar says is crucial to meet operational expenses and payroll. A portion of that money was also set aside for severance payments for Baha Mar staff.

On Wednesday night, Baha Mar advised its employees that it believes negotiations with its contractor remain the best chance of successfully completing the project. The Baha Mar statement said, “Simultaneously, we are continuing negotiations day and night to try to come to a resolution that will allow us to complete the project.

“We feel both of these avenues can bring Baha Mar to completion; our goal in pursuing both is to find the quickest possible route.”

The statement to the 2,500 employees said “at this point and your employment status remains unchanged”.

If those talks fall though, the government expects to move ahead with a winding up petition it has filed in the Supreme Court. A hearing date for that petition has been set for July 31, when a provisional liquidator is expected to be appointed to manage Baha Mar’s affairs. The government announced on Monday that it will observe talks between Baha Mar and CCA.

Baha Mar filed for Chapter 11 bankruptcy in the United States on June 29. That same day, it sent the majority of its staff home until further notice.