“Baha Mar to be sold twice as court process ends” – The Tribune 3rd October 2016
Excerpt from this article; “Baha Mar’s secured creditors has acquired the project from the receivers for a sum ‘substantially higher’ than that offered by the top bidder, in order to facilitate its construction completion.
The pathway to the $3.5 billion development’s completion and eventual opening is disclosed by Supreme Court Justice Ian Winder, who reveals that Baha Mar will be sold ‘twice’.
The first sale is from the Deloitte & Touché receivers to a special purpose vehicle (SPV) owned by the China Export-Import Bank, the project’s $2.45 billion secured creditor.
This deal, which values Baha Mar as an ‘as is basis’, meaning that the present value of its incomplete real estate assets, will move the Cable Beach resort development out of receivership.
Justice Winder, in his September 27, 2016 ruling said China Export-Import Bank was only willing to invest ‘hundreds of millions of dollars’ in completing Baha Mar if the project was removed from receivership.
Once Baha Mar has been completed, under the ownership of the banks SVP, the ‘second’ or final sale will occur.
This will see a controlling interest in the SPV being sold by China Export-Import Bank to the intended purchaser.
Justice Winder’s ruling does not confirm the identity of Baha Mar’s prospective buyer, but reveals that its purchase price ‘remained lower’ than that offered by the China Export-Import Bank-controlled SPV to the creditors.
Other revelations obtained in Justice Winder’s ruling included:
- The Baha Mar buyer is a group who emerged ‘outside of the bidding process’ set up by Deloitte and Touché for the projects sale.
It would appear that while Hurricane Mathew was affecting our lives and changing some persons way of life forever; a ‘perfect storm’ has been forming within the Office of the Prime Minister (OPM); who are these buyers that have been allowed to circumvent the rules of the bidding process and why were they allowed to bring the property out of receivership?
“Buyer revealed for Baha Mar – Perfect Luck new Baha Mar Owner” – The Nassau Guardian; 18th October 2016
Excerpt from this article; “The Office of the Prime Minister confirmed that the new owner of Baha Mar is Perfect Luck Holdings Ltd.
However, the identities of the owners of that company remain shrouded in secrecy.
The Christie administration has up to now kept mum about the status of Perfect Luck as anything other than the purchaser of the debt the Bankrupt Baha Mar. Ltd. Owed to employees and contractors. However, the office of the Prime Minister (OPM) said in a statement yesterday, ‘The assets of Baha Mar have been acquired by Perfect Luck Holdings Limited (“Perfect Luck”).
‘The sale followed a lengthy marketing process by the receivers, and that process and the resulting sale of the assets to Perfect Luck were overseen and approved by the Bahamas Supreme Court.”
Initial investigations by Guardian Business revealed only a company named ‘Perfect Luck Holding Limited’ was registered in Hong Kong in March 29th, 2014 with cooperate number 2072340. The company was marked ‘live’ in Hong Kong cooperate registries up to July, 2016.”
So Baha Mar was brought out of receivership and sold to the China Export-Import Bank for a sum ‘substantially higher’ than that offered by the top bidder but Perfect Luck Holdings Limited was not the top bidder because they emerged outside of the bidding process set up by the receivers, Deloitte and Touché? Something does not seem right here as it seems CEXIM put up the money to create “Perfect Luck Company” and due to the fact that the original developer, Sarkis Izmirlian, has put forth a ‘mind blowing deal’ to regain ownership of the Baha Mar property only to be told that he is ‘too late” to the party’.
“Sarkis submits a last ditch Baha Mar bid.” – The Tribune
Excerpt from this article; “Sarkis Izmirlian yesterday made a last ditch intervention to regain ownership of the $3.5 billion Baha Mar project, offering to acquire the property for a price ‘in excess’ of what both its secured creditors and ultimate purchaser will pay.
Baha Mar’s original developer, unveiling an October 10 letter he sent to the China Export-Import bank, has submitted another purchase offer that was branded as ‘superior economically’ to all rivals,’ and in the best interest of the Bahamas.’
The letter, which was copied to Prime Minister Perry Christie, also took a swipe at the ‘double standards’ with which Mr. Izmirlian alleges he has been treated.
Couched in diplomatic language, the document said it was ‘very surprising’ that the proposed Baha Mar purchaser had been discovered outside of the formal sales process operated by the project’s receivers, the Deloitte and Touché accounting firm.
Mr. Izmirlian, and his BMD Holdings vehicle, argued that they were informed ‘multiple’ time that their offers would only be entertained if submitter through the receivers process, yet they – and the China Export-Import Bank, as their employers – appeared to have performed a complete ‘u-turn’ on this condition.” And I am left to ask is if this ‘U-turn’ even legal?
Then there is the question of Perfect Luck having purchased the debt of the bankrupted Baha Mar Ltd owed to its employees and contractors; shouldn’t the ‘gift’ by the Chinese Import-Export Bank have compensated for this, unless of course there were some unknown conditions attached to the ‘gift’ as a part of the ‘secret deal’ that made the ‘gift’ more of a loan. The details of the ‘deal’ have never been revealed to the people, leaving them in the dark as to the concessions and conditions that have been attached to said ‘secret deal’.
Indeed, the sale of Baha Mar, is a very curious one, as the Chinese Export-Import bank is only willing to invest in the required funds to complete the resort on the condition that they have full control of the property which already has been sold to Perfect Luck Holdings Limited.
Curious indeed.
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