NASSAU, BAHAMAS –China Construction America (CCA), has obtained an “emergency stay” to prevent the potential liquidation of two Nassau resorts, seeking to delay enforcement of a recent $1.6 billion judgment.
This ruling, awarded to Baha Mar’s original investor Sarkis Izmirlian, found that CCA committed fraudulent actions that ultimately forced BML out of the Baha Mar project.
CCA argued that the stay is essential to avoid insolvency, which it claims would impact operations at two hotels it owns—British Colonial and Margaritaville—that employ hundreds of Bahamians and support ongoing construction projects. In its November 1 application, CCA indicated that no bonding company would accept its assets as collateral until an appeal ruling is reached. The company warned that insolvency would affect not only its own interests but also third parties dependent on its services.
“The two hotels CCAB (CCA Bahamas) owns employ hundreds, and CCA provides shared services—communications, accounting, IT, and other administration—to affiliates engaged in active construction,” CCA said.
With the judgment accruing $400,000 in daily interest, CCA called the ruling a “gross injustice” that threatens its business and pressed for an emergency stay. “Imposing $1.6 billion in liability on companies worth nowhere near that is egregiously wrong. If it stands, defendants will be insolvent,” CCA argued, adding it was unable to secure a bond for the judgment.
CCA claimed that a stay would not disadvantage BML, as the appeal would proceed within eight weeks, with interest still accruing to preserve BML’s potential recovery.
A spokesperson for CCA Construction Inc stated: “The lower court’s decision is by no means the last word in this matter, and the action we have taken to begin the appeal process is the first step towards correcting a ruling that misapplies basic principles of New York law, misconstrues core facts, and completely overlooks the consistently tireless construction work done by CCA Bahamas that ultimately completed the Baha Mar Resort. Through its own irresponsible actions, BML Properties caused BML to overborrow, overspend and overextend itself and then brought about its own losses by unilaterally and secretly putting the project into a wrongful bankruptcy behind the backs of its partners and the Bahamian Government. BML Properties’ ploy to keep control of the project, which was rejected by independent courts in the United States and The Bahamas, harmed not only CCA Bahamas and CSCEC Bahamas, but also the Bahamian economy. We look forward to presenting our arguments to the appellate court.”
Justice Andrew Borrok found that CCA, the US arm of China State Construction Engineering Corporation, defrauded BML and breached its investment agreement, leading to BML’s $845 million investment loss. The court ruled that CCA’s actions caused Baha Mar’s bankruptcy in June 2015, citing four instances of fraud and six contractual breaches by CCA, resulting in a $1.6 billion damages award.
The judgment also noted that CCA’s $54 million purchase of the British Colonial resort, rather than paying Baha Mar subcontractors, triggered a liquidity crisis. Additionally, the court found CCA’s $2.3 million payment to Notarc Management Group, run by Leslie Bethel (son of Sir Baltron Bethel), was intended to “curry favor” with the Bahamian government through senior advisor Christie.
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