NASSAU, BAHAMAS – Sarkis Izmirlian’s BML Properties Ltd. has filed a motion seeking the appointment of an Examiner in the Chapter 11 case of CCA Construction, Inc., requesting an investigation into CCA’s dealings with affiliates and fraudulent transfers, including its parent company, which aims to dilute BMLP’s claim by extending further credit in the bankruptcy.
BMLP argues that an Examiner is necessary to investigate fraud, misconduct, and mismanagement within CCA’s operations, highlighting proven instances of fraud during the August 2024 New York Supreme Court trial. The motion further states that CCA’s misconduct in the Baha Mar project was not an isolated incident.
This motion parallels the Winding-Up Petitions filed by BML Properties in the Supreme Court, which seek the appointment of official liquidators for CCA Bahamas Ltd. and CSCEC (Bahamas) Ltd. following their failure to satisfy a $1.6 billion judgment. The liquidators would investigate financial misconduct within the Bahamian CCA entities, which include ownership of the Margaritaville Beach Resort and the British Colonial Hotel.
These legal actions follow the October 2024 ruling by the New York Supreme Court, which awarded BML Properties over $1.6 billion in damages against CCA and its affiliates, citing multiple instances of fraud and misappropriation of funds linked to the Baha Mar project. CCA and its affiliates, subsidiaries of the Chinese construction giant China State Construction Engineering Corporation (CSCEC), have since filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey.
In response, CCA Bahamas criticized BMLP’s winding-up petition, calling it “meritless” and asserting that the real threat to employees at Margaritaville and British Colonial is BMLP’s actions. CCA claims that BMLP’s mismanagement caused the collapse of the Baha Mar resort and is now attempting to bypass the New York appellate process with its Bahamian petition.
BML Properties Ltd. has requested the appointment of Simon Townend and Jean K. Green-Thompson of KPMG Bahamas Ltd., along with James Neill of KPMG Ireland, as official liquidators to oversee the winding-up process, investigate financial wrongdoing, and ensure the proper operation of CCA’s Bahamian entities.
