Supreme Court Decision Ruling gives Liquidators Financial Control of Baha Mar.

September 8, 2015 (Bahamas Information Service, for the Office of the Attorney General) — The Supreme Court yesterday rendered its written Ruling on both the appointment and powers of third-party Joint Provisional Liquidators Krys Global and Alix Partners, in the matter of Baha Mar.

On behalf of the Government of the Bahamas, the Attorney General welcomed the decision, describing it as consistent with The Bahamas’ national interest.

The decision provides a framework to secure a court-approved plan for completion and opening of Baha Mar, and, in so doing, could pave the way to the timely completion and opening of the resort.

The Ruling gives the Joint Provisional Liquidators the power to take control of all bank accounts and other assets of Baha Mar. In effect, and until a court-approved plan for the completion of Baha Mar is established on November 2, 2015, the independent court supervised liquidators retain financial control of Baha Mar.

Implicit in the imposition of a November 2 deadline is an acknowledgment that every day the development remains “shuttered”, the assets at Baha Mar lose value. In tasking the Joint Provisional Liquidators with preventing further devaluation of those assets, the Court signaled the urgency of a resolution.

With this in mind, the Court empowered the Joint Provisional Liquidators to begin talks aimed at resuming development, with all parties in Baha Mar. Re-launching the development is critical to protecting the value of Baha Mar’s assets, and all parties should now work toward this goal.

The Ruling offers a road map to a timely resolution of the matter. In addition to ensuring that the Bahamian assets will be controlled by the independent Joint Provisional Liquidators under the supervision of the Bahamas Court, it provides a time-limited window to establish a plan for the resumption, completion and opening of the resort under private ownership and operation.

“This approach is in our national interest,” remarked the Attorney General. “It provides a strong mechanism to protect the full value of investments by Bahamian creditors; while putting the project in a position to deliver on its promise, which is to generate job creation while delivering a world class tourist experience.”

Government will cooperate fully with the Joint Provisional Liquidators, and encourages other parties to do the same.