NASSAU, BAHAMAS – BML Properties Ltd., led by Sarkis Izmirlian, the original developer of the Baha Mar resort, condemned CCA Construction Inc.’s recent bankruptcy filing as an attempt to evade accountability for fraud.
This follows a $1.6 billion ruling against the company by a New York court.
CCA Construction filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey to protect its interests and pursue an appeal of a New York State Supreme Court ruling in the ongoing Baha Mar dispute, which the company claims was “erroneous.”
In response, Izmirlian’s BML Properties Ltd. expressed disappointment over the bankruptcy filing, with Izmirlian, the chair of BML and the original developer of the Baha Mar resort in Nassau, Bahamas, stating: “This is yet another attempt by CCA and its multibillion-dollar parent, China State Construction Engineering Corporation (CSCEC), to evade responsibility for their actions by seeking refuge in a Chapter 11 proceeding.”
The Appellate Division of the New York Supreme Court recently denied CCA’s motion to stay the enforcement of the $1.6 billion judgment awarded to Sarkis Izmirlian. The ruling also vacated an interim stay granted in November, clearing the way for the immediate enforcement of the judgment. The court found that CCA was liable for fraud and breaches of contract, actions that allegedly contributed to the 2015 bankruptcy of the Baha Mar resort.
The court’s decision confirmed that CCA’s fraudulent actions were directly linked to BML’s forced exit from the Baha Mar project. CCA has argued that a stay was necessary to prevent insolvency, claiming it would affect operations at its two Bahamian resorts—British Colonial and Margaritaville—and disrupt ongoing construction projects employing hundreds of Bahamians.
Izmirlian expressed confidence that both the bankruptcy judge and the New York appellate court would see CCA as “a company fraudulently managed by bad actors.”
He added, “We will take every step necessary to enforce our rights against CCA and all those who orchestrated its fraudulent actions, including its parent company, CSCEC.”
