Baha Mar, the new megaresort in the Bahamas that has faced repeated delays, is filing for Chapter 11 bankruptcy protection. The complex, which consists of the flagship Baha Mar Casino & Hotel, as well as Rosewood, SLS Lux, and Grand Hyatt hotels, was originally slated to open in December 2014 but got pushed to May, after not delivering on its phased launch in March.
Sarkis Izmirlian, chairman and CEO of Baha Mar Ltd., the developer of the resort, has blamed the delays on the general contractor, Chinese Construction America. “The general contractor repeatedly has missed construction deadlines,” Izmirlian said in a statement. “This has caused both sizeable delay costs and forced the resort to postpone its opening. Unable to open, the resort has been left without a sufficient source of revenue to continue our existing business.”
Baha Mar’s Board of Directors determined that Chapter 11 “is the best path to provide the time to put in place a viable capital structure and working relationships to complete construction and successfully open Baha Mar.”
Izmirlian is arranging the funding for the Debtor-in-Possession (DIP) financing facility of up to $80 million, of which up to $30 million will be utilized by Baha Mar over the next 30 days, according to a press release. Read more over at Forbes.