NASSAU, Bahamas, CMC – BML Properties Ltd. (BMLP) says it has reached a “comprehensive agreement” with several stakeholders, including China Construction America (CCA), a subsidiary of China State Construction Engineering Corp. Ltd. (CSCEC), to resolve their legal dispute over the construction of the Baha Mar resort.
In a statement, the parties said that the agreement is subject to United States Bankruptcy Court approval and that, in accordance with the agreement, BMLP is dropping all claims in the United States and The Bahamas against CCA, CCA Bahamas Ltd (Bahamas) Ltd, and CSCECB and their respective affiliates without any admission of liability on their part.
“The agreement is subject to approval by the US Bankruptcy Court in New Jersey, which CCA hopes to obtain in the coming days. CCAB will retain its ownership interest in the British Colonial and Margaritaville Beach Resort hotels, which the company believes will benefit the entire Bahamian community well into the future.”
The statement said that the resolution follows CCA, CCAB, and CSCECB’s motion to appeal the New York State Supreme Court’s prior decision and CCA’s filing for chapter 11, which had been pursued in parallel to protect the interests of the co-defendants’ stakeholders.
“We are pleased to have successfully resolved this matter and to move forward with clarity and certainty for our employees, customers, and partners,” said Yan Wei, chairman and chief executive officer of CCA.
“While we remain convinced by the strength of our legal arguments, bringing this matter to a close is in the best interests of our stakeholders and will allow us to focus entirely on our strategy for delivering world-class construction projects and hospitality operations to our customers. We thank our team and partners for their continued support and look forward to many opportunities together.
“We also want to extend our appreciation to the people and businesses of The Bahamas for their continued friendship and trust as we look to deepen our relationships in the country,” Wei added.
The settlement comes months after the Appellate Division of the New York Supreme Court upheld a ruling that awarded BMLP US$1.6 billion in damages after finding that CCA breached its contract and committed fraudulent acts, ultimately forcing BML out of its Baha Mar investment.
“We are pleased to have put this matter behind us and reached a resolution that meets our expectations. The economic impact of Baha Mar will be felt for decades to come, and we remain proud to have been the visionaries behind this landmark development,” said BMLP’s Sarkis Izmirlian.
“I want to extend my heartfelt thanks to the people of The Bahamas for their unwavering support and the many letters of encouragement throughout the past decade,” Izmirlian added.
The litigation stemmed from disputes that arose during the final stages of developing the Baha Mar resort.
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