The owners of Baha Mar, a Caribbean resort project valued at more than $3.5 billion, filed for bankruptcy court protection in Delaware, blaming delays by the project’s general contractor.
The four-hotel resort and golf complex, featuring the largest casino in the Caribbean and its own private island, was presented as the most significant tourism project in the history of the Bahamas.
“The general contractor repeatedly has missed construction deadlines,” Baha Mar Ltd. Chief Executive Officer Sarkis Izmirlian said in a statement Monday. “Unable to open, the resort has been left without a sufficient source of revenue to continue our existing business.”
Bankruptcy protection will provide the time needed to complete the project, according to the statement.
Baha Mar Enterprises Ltd. listed debt of more than $1 billion in Chapter 11 documents in U.S. Bankruptcy Court in Wilmington.
Among the largest unsecured creditors listed were CCA Bahamas Ltd., owed $72.6 million in construction costs; Bahamas Electricity Corp., owed $19.5 million; and Yates-Osprey J.V. owed $5.28 million. All are based in Nassau. Bally Technologies of Las Vegas is owed more than $1 million in trade debt, according to the filing.
The main case is In re Northshore Mainland Services Inc., 15-11402, U.S. Bankruptcy Court District of Delaware (Wilmington).
This article was written by Dawn McCarty from Bloomberg and was legally licensed through the NewsCred publisher network.