THE government yesterday expressed “hope” that the claims of former Bahamian workers at Baha Mar will be settled by the end of next month, with all other claims to be dealt with by year-end.
In a statement released yesterday, the Christie administration also revealed the establishment of a stakeholder committee to administer creditor claims; however, there was no information given on how the process would be conducted, its timeline, or the amount of funding allocated for claims.
The members of the newly formed committee are: former Minister of State for Finance James Smith, CBE; Grant Lyon, liquidation claims advisor to the government; Yanping Mo, representative of the Export-Import Bank of China; Norbert Chan, representative of court appointed receiver Deloitte & Touche; and Tiger Wu, representative of China Construction America (CCA).
The statement read: “On August 22, 2016, the Supreme Court approved the plan to remobilise the resort. Part and parcel of the remobilisation was the acknowledgement and provision of funds to deal with the claims of unsecured creditors, in particular Bahamian creditors, in accordance with an agreed formula and a process for the assignment of those claims.
“It is important to note that these claims are being paid from monies which have been made available by the bank, as the Baha Mar companies in liquidation have no assets from which to pay creditors
“The bank will shortly place on deposit in the Bahamas the funds necessary for the work of the committee; to settle the Bahamian employees’ related claims as outlined by the prime minister during his address to the nation on August 22; and to administer and pay the claims of Bahamian creditors, according to the process which has been indicated.”
It continued: “Further announcements on the specific details of the process will come from the committee. The government hopes that Bahamian employee claims will be settled no later than September 30, 2016 and that all other claims will be dealt with on or before December 31, 2016.”
Prime Minister Perry Christie announced that a deal had been reached between the government and CEXIM to remobilise the stalled resort during a nationally televised address last Monday.
He said former employees would be paid monies owed to them and Bahamian creditors and contractors with claims would get a substantial portion, if not all, of what was due to them.
However, the highly anticipated address did not provide any clarity on a definitive buyer or sale price, or details on how unsecured creditors will be paid. Mr. Christie has insisted that lawyers have instructed him not to divulge more specific details because of the sensitivity of the matter and the amount of money being transacted among parties.
Mr. Christie has since come under repeated fire for the lack of specificity of his announcement, with detractors seeking to impugn the decision to have the court documents relating to the Baha Mar agreement sealed.
During his 2016/2017 Budget Communication in the House of Assembly in May, Mr. Christie announced that the government and Chinese officials had entered into a “framework agreement” to complete the stalled Baha Mar resort as “expeditiously as possible”.
At the time, he said that talks were underway between CCA Bahamas and the resort’s court appointed receivers to agree to appropriate terms for construction to recommence and to prepare a construction agreement to provide the timeline for the project’s completion.
Closing out the debate several weeks later, Mr. Christie also revealed at that time that Baha Mar’s receivers had shortlisted two groups, one with a Bahamian investor connection, as potential ‘preferred bidders’ for the $3.5 billion development.
Referring to the highly speculated ‘investment incentives’, Mr. Christie explained that the matter required negotiations with the new investor, who had not yet been decided on by CEXIM.
He added that he had asked the bank and its receivers to “separate” Baha Mar’s construction completion from the task of finding a purchaser.
Appearing as a guest on the “Ed Fields Live” show on KISS FM in July, the prime minister said he believed the Export-Import Bank of China was prepared to present a possible buyer for the beleaguered $3.5 billion Baha Mar resort, and declared that a resolution was “imminent”.
The mega resort was first scheduled for December 2014 opening, but was delayed to March 2015 and again to May 2015.
The property was placed into receivership last October.
By Ava Turnquest, Tribune Chief Reporter
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