What’s next for troubled megaresort
By the Caribbean Journal staff
The Baha Mar saga has taken a major step forward with the appointment of a provisional liquidator by the Supreme Court of the Bahamas.
The ruling by the court means the appointment of a provisional liquidator with limited authority. It also schedules the winding up petition to two months from now.
The move provides Baha Mar with further time to press forward in its efforts to resolve issues so that it can complete construction properly and open successfully s soon as possible.
In a statement, Baha Mar said the ruling “gives us further confidence that we will succeed in our efforts.”
“We are pleased that, in making its ruling, The Bahamian Supreme Court has made it quite clear that the present intention is to not have Baha Mar liquidated or its management replaced. In fact, the judge specifically wants to make sure that Baha Mar’s assets are preserved—which is a priority we all share,” the company said.
“With the distraction of this proceeding behind it, Baha Mar and its counterparties can focus on the tasks at hand, free form the uncertainty that the petition had caused,” Baha Mar said.
According to the statement, Baha Mar is 97 percent complete.
The long-delayed hotel, which was originally slated to open in December 2014, is projected to include 2,200 rooms across three brands: Grand Hyatt, Rosewood and SLS Lux, along with a Baha Mar branded-hotel and casino. In 2014, Baha Mar also acquired the adjacent Sheraton Nassau Beach, transforming it into what will soon be the Melia at Baha Mar.
Morgans Hotel Group had been planning to open a Mondrian hotel at Baha Mar until it pulled out last year, paving the way for the entry of SLS Lux.
But now Rosewood is also seeking an exit of its planned 200-unit hotel at Baha Mar, moving to have its licensing agreement and other agreements with Baha Mar terminated.
Baha Mar is disputing Rosewood’s charge that there is cause to terminate their agreement.
The continued struggles of the property led to a downgrade of the Bahamas’ sovereign credit rating by Standard and Poor’s at the end of last month.
Baha Mar Ltd first filed for bankruptcy in June, citing alleged delays by its Chinese contractor.