It appears to be a ray of hope for the famous Baha Mar integrated resort casino in the Bahamas as at least two bidders are interested to take over this stalled $3.5b property. Finding a new owner for Baha Mar integrated resort and casino for its bankrupt owners is difficult task and they need to carefully explore their options and select the new bidders as early as possible.
Bahamian Prime Minister, Perry Christie last week told legislators that the bankrupt Baha Mar’s receivers had shortlisted two groups as “preferred bidders” for the project. Christie said that the project’s original backer before China Export Import Bank (EXIM) foreclosed on the property, Sarkis Izmirlian was not involved with either bid.
One of the bidders for this project has a “Bahamian investor connection” however Christie refused to divulge any further details about the bidders. (Sun International founder Soi Kerzner, who has a Bahamian connection was previously rumoured to be interested in taking over Baha Mar casino). Christie further added that Bahamian government was not involved in the negotiation process currently taking place in China, which is also the home to property’s principal contractor, China Construction America (CCA).
Last month Christie announced that a “framework agreement” had been reached between the government, EXIM and CCA to ensure that the work on the unfinished property of Baha Mar would be completed. This week Christie said that his government was in a “wait position” until they are called upon to issue the necessary permits for the remittance of work.
Izmirlian’s Baha Mar Ltd has already filed for Chapter 11 protection over a year ago after missing several opening targets, which the company blamed it on CCA’s ineptitude. Even around 2k staffs were also laid off in October; while Bahamian contractors are still not sure whether they’ll ever recover the $74m they owed for the unpaid work on this project.
Meanwhile in recent move Bermuda’s tourism ministry has approved two local businesses – Hamilton Princess & Beach Club and the St.George’s Club as the first designated sites which are eligible to apply for one of the three casino licenses that nation wants to award. This site application process was opened in March by the Bermuda Casino Gaming Commission and its executive Director Richard Schuetz said there has been “robust demand” for designation. Till now there is no limit on the number of sites that can be designated however it doesn’t guarantee that site will receive a casino license.
