Baha Mar Chapter 11 cases dismissed for all debtors but Northshore

By Caroline Salls

Pittsburgh, Sept. 15 – All but one of the Baha Mar debtors’ Chapter 11 bankruptcy cases were dismissed Tuesday by the U.S. Bankruptcy Court for the District of Delaware.

The only case that was not dismissed was that of Northshore Mainland Services, Inc., which the court said “is a Delaware corporation with operations in the United States” and is not subject to any of the Baha Mar winding up proceedings in the Bahamas.

The dismissed debtors include BML Properties Ltd., Baha Mar Operating Co. Ltd., Riviera Golf Ventures Ltd., Baha Mar Entertainment Ltd., Baha Mar Support Services Ltd., Baha Mar Leasing Co. Ltd. and Baha Mar Sales Co. Ltd.

In approving the request for dismissal of the other debtors’ cases, judge Kevin J. Carey said that there is no evidence that denying the dismissal motion would bring the case parties back to the bargaining table in the near future.

“I am convinced, however, that prompt judicial action will enhance the likelihood of a successful outcome,” Carey said in his ruling.

“Under these circumstances, I can perceive no greater good to be accomplished by exercising jurisdiction over these Chapter 11 cases, except for that of Northshore.

“The proceedings that have occurred to date in the Bahamian Supreme Court demonstrate that the debtors are being treated fairly and impartially.

“Although there are clear differences between the Bahamian insolvency proceedings and the United States’ Chapter 11 process, there has been no evidence that the Bahamian laws contravene the public policy of the United States.”

As previously reported, project construction manager CCA Bahamas, Ltd. and secured creditor Export-Import Bank of China each asked the U.S. court to dismiss the company’s Chapter 11 cases, arguing that the proceedings belong in the Bahamas, not the U.S. court.

Company ‘disappointed’

In a Tuesday news release, Baha Mar said it is “disappointed” that the dismissal motion was granted for most of the debtors and that it will explore its alternatives in connection with the ruling.

Baha Mar said the court made clear in its ruling that the Chapter 11 process “with all stakeholders participating, under these circumstances, would be an ideal vehicle for the restructuring of this family of related companies with the ultimate goal of finishing a project said to be 97% complete and, upon its exit from Chapter 11, to be in sound financial footing, with appropriate treatment of creditors.”

The company said in the release “We are continuing to do all we realistically can, including working with the provisional liquidators appointed by the Bahamian Supreme Court, to try to resolve the issues that have prevented [the Baha Mar resort] from opening.”

Baha Mar is a Nassau, Bahamas-based resort that filed for bankruptcy on June 29. The Chapter 11 case number is 15-11402.

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