Baha Mar issues statement on CCA Press Release

NASSAU, Bahamas, July 27, 2015 /PRNewswire/ — Baha Mar Ltd. issued the following statement with regard to CCA Bahamas Ltd’s (“CCA”) press release dated July 26:

“It is interesting that when a very viable proposal is put forward by Baha Mar Ltd. to the Export-Import Bank of China—a proposal which provides for a significant equity infusion by the Izmirlian family to complete and open Baha Mar and would utilize Bahamian contractors and a Bahamian workforce to properly finish the work at Baha Mar that CCA failed to do—CCA issues a highly defensive and apparently panicky press release. CCA should be concerned. No matter how CCA tries to spin it and no matter how often it tries to deflect from its lack of responsibility, it cannot cover up the sad pattern of its failing to perform properly at Baha Mar and other important projects in The Bahamas as well. CCA in its release cites not a viable proposal on its part but rather a distortion of an old posture that made discussions to negotiate a consensual resolution with it as one of the parties a sham. It is why we came forward and made our very viable proposal directly to The Export-Import Bank of China. CCA failed to complete Baha Mar repeatedly on the timetables it set, its work has been called into question, it walked off the job, its failure to perform caused Baha Mar to have to seek Chapter 11 protection, and it has been uncooperative in working toward a consensual resolution.”

About Baha Mar
Baha Mar is set on 3,000 feet of white sandy beach just 10 minutes from Nassau’s fully renovated and expanded international airport. It will feature elite hotels with gaming, entertainment, private residences, shopping and natural attractions that reflect an authentic Bahamian experience. Amenities will include a Jack Nicklaus Signature golf course; 200,000 square feet of flexible convention facilities, including a 2,000-seat entertainment venue; art galleries featuring Bahamian art; more than 40 restaurants, bars and clubs; global luxury designer and local artisan boutiques; and 20 acres of exquisitely landscaped beach and pool experiences, including a beachfront sanctuary with native Bahamian flora and fauna. For more information during this process please visit www.bmpathforward.com.

CCA Bahamas Ltd. Comments on Status of Baha Mar Project

Parent company prepared to invest an additional $100 million in Baha Mar Ltd. and provide a guarantee of $175 million to China Exim Bank in connection with new loan facility
NASSAU, Bahamas–(BUSINESS WIRE)–CCA Bahamas Ltd. (CCA Bahamas), a wholly owned indirect subsidiary of China State Construction Engineering Corporation Limited (CSCEC) and the construction manager / general contractor for the $3.5 billion Baha Mar resort project, today issued the following statement with regard to the Baha Mar resort project:

“CCA Bahamas has continued to make every effort to work diligently and constructively with the Bahamian government, China Exim Bank, and Baha Mar Ltd., to reach a swift resolution that will enable work to restart on the Baha Mar project.”

“CCA Bahamas has continued to make every effort to work diligently and constructively with the Bahamian government, China Exim Bank, and Baha Mar Ltd., to reach a swift resolution that will enable work to restart on the Baha Mar project.

Below are key facts about CCA Bahamas’ legacy business interests in the Baha Mar resort project and its continued initiatives to reach a successful resolution:

1. We have never had any development responsibilities with respect to Baha Mar. Our role has been—and will continue to be—limited to that of a construction contractor. In an effort to resurrect Baha Mar, our Company went above and beyond the obligations of a traditional construction contractor and made a minority equity investment of $150 million (preferred shares) in Baha Mar Ltd. (BML) which was indispensable to the funding of the project.

2. We have a firm, binding contract in place with Baha Mar Ltd. to serve as the construction manager/ general contractor for the Baha Mar project. BML has failed to pay us the normal monthly construction progress payments of approximately $72 million for the first five months of 2015 and has not honored our requests for additional payments of approximately $70 million for outstanding construction change orders.

3. BML is bankrupt because it repeatedly made mistakes in the development of Baha Mar. Their attempts to place blame on CCA Bahamas are self-serving explanations to deflect attention from their own negligence and mismanagement of the resort’s development. However, despite their serial missteps and purposeful avoidance of its contractual payment obligations, we are once again offering to provide financial assistance to help save Baha Mar and create thousands of jobs for the Bahamian people.

4. Completing Baha Mar is a major priority for our Company. It is the largest project of its kind in the history of the Caribbean and a national priority for the people and government of The Bahamas. To demonstrate our strong confidence in the project and further reinforce our continued commitment to completing Baha Mar, we have offered to invest an additional $100 million in BML and provide a guarantee of $175 million to China Exim Bank in connection with China Exim Bank’s new $200 million loan facility to BML.

5. To satisfy China Exim Bank’s clear requirements for a guarantee of the new loan facility, we have asked BML to provide a similar guarantee. Mr. Izmirlian has categorically rejected our reasonable request for a counter guarantee—one which would put the Baha Mar resort project back on track for completion.

6. BML has counterproductively demanded that we reduce the value of our existing equity investment ($150 million of preferred shares) in BML, to $75 million—a 50% write-down ($75 million) of our equity investment in BML and has also requested that the interest rate on our investment in BML be reduced to zero.

CCA Bahamas’ expertise and historical oversight of the Baha Mar project is essential to successfully completing the resort as quickly as possible, and putting Bahamians back to work. While BML continues to be unwilling to reach a mutually beneficial agreement, our commitment to supporting the Bahamian government and the people of the Bahamas has not waned. We will continue to work closely with any and all appropriate parties to reach a viable plan in order to expeditiously open this landmark resort.”

About China State Construction Engineering Corporation & CCA Bahamas Ltd.

Established in 1985, China Construction America (CCA) is the North American and South American subsidiary of CSCEC. CSCEC is a public company listed on the Shanghai Stock Exchange with a total market capitalization of $48 billion as of June 2015. Ranked 37th among Fortune Global 500 companies in 2015 and no. 1 on the ENR Global Contractors list in 2014, CSCEC is unrivaled by any other construction company in the world.

CCA Bahamas is a wholly owned subsidiary of CCA with founding principles of integrity and innovation with quality assurance and value creation. With revenue of approximately $2 billion in 2014, CCA is the no. 32 ranked contractor in the US. In accordance with its core values, CCA is committed to creating value for all stakeholders and building a better Bahamas and a better world.

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IMAGE: www.tribune242.com

See also iNews Cayman related stories dated:
June 10 2015 “Caribbean tour operators split on selling much-delayed Baha Mar” at; http://www.ieyenews.com/wordpress/caribbean-tour-operators-split-on-selling-much-delayed-baha-mar/
July 20 2015 “Chinese bank could force incomplete Bahamas resort to cut 2,000 jobs” at: http://www.ieyenews.com/wordpress/chinese-bank-could-force-incomplete-bahamas-resort-to-cut-2000-jobs/
July 15 2015 “Developer of Bahamas resort accuses Chinese of sabotage, fraud” at: http://www.ieyenews.com/wordpress/developer-of-bahamas-resort-accuses-chinese-of-sabotage-fraud/