(Nassau, Bahamas) By Elcott Coleby: Citing financial insolvency of the stalled $3.5 billion Baha Mar project on Cable Beach, Justice Ian Winder of the Bahamas Supreme Court approved the request of the Joint Provisional Liquidators to separate 2,020 Baha Mar employees on Thursday, effective Friday, October 23.
The joint provisional liquidators are Bahamas-based KRyS Global and UK-based AlixPartners and the resort project has been stalled since June 29 when the bankruptcy petition was filed in a Delaware court.
Of the 2,020 persons laid-off, 1,440 were non-active employees and 580 were active.
“Though today’s layoffs are difficult on everyone, it further highlights the urgency for everyone to remain at the negotiating table and maintain the dialogue that may lead to a resolution, a re-start of construction and the completion of the Baha Mar project,” said Edmund Rahming, KRyS Global Managing Director.
“We were paying housekeeping staff when there was no housekeeping to do, spa staff when there was no spa, casino staff when there was no casino to operate,” said Alastair Beveridge, AlixPartners. “Thanks to monies that were made available to us by the Government from funds that were due to Baha Mar for road construction works, we were able to keep these staff members on as long as we did. We know that they have obligations, that many of them gave up other jobs to join the Baha Mar dream team and now we are continuing to focus on how best to make that dream a reality.”
The redundancy exercise did not affect the Melia Nassau Beach Resort.
Prime Minister Christie “disappointed” over Baha Mar lay-offs
Acknowledging that the level of insolvency coupled with protracted negotiations were the causes of the lay-offs, Prime Minister Perry G. Christie in a press statement expressed “disappointment for the affected Baha Mar employees and their families at the action taken by the Joint Provisional Liquidators in making some 2,000 employees redundant. This arises from the insolvency of Baha Mar and the protracted exercise to secure a negotiated settlement.”
The statement said that the government made a strong appeal to the provisional liquidators in a bid to save Bahamian jobs.
“The Government has made the strongest possible representation to the Joint Provisional Liquidators and the stakeholders in this commercial transaction between the developer Baha Mar, the secured lender China Export Import Bank and the principal contractor and an equity partner China State Engineering and Construction Company, for the retention of Bahamian staff, meeting outstanding obligations to Bahamian contractors and sub-contractors, funding (both interim and for completion purposes) and completing the project on mutually acceptable terms as soon as possible.”
Referencing the decision date of 2nd November when the liquidation process could officially begin, the Prime Minister promised continued dialogue with relevant stakeholders with a view to securing the best possible outcome that best serves the national interest.
“Whether the process of a negotiated arrangement is achieved or the Bank proceeds to receivership in the time remaining before November 2nd, 2015 date when the process of liquidation could be started, the Government is presently engaged in meetings and other dialogue with the relevant stakeholders and the Joint Provisional liquidators to arrive at the best possible solution which will best serve the national interest.”
