NASSAU, BAHAMAS- The U.S. Bankruptcy Court, District of New Jersey, has approved the appointment of Todd Harrison as independent examiner in the CCA Construction bankruptcy case.
This development comes in the wake of a $1.6 billion judgment against CCA, which was recently upheld by the Appellate Division of the New York Supreme Court in favor of Sarkis Izmirlian, the original developer of the Baha Mar resort. Izmirlian’s company secured the judgment for fraud and breach of contract after a judge determined that CCA’s mismanagement led to the collapse of the resort project in 2015.
Izmirlian alleged that CCA, the U.S. subsidiary of China State Construction Engineering Corporation (CSCEC), misrepresented its ability to complete the resort on time and breached its investment agreement, resulting in the loss of BML Properties’ $845 million investment. The court found that CCA’s actions, including fraud and contract violations, directly caused the project’s failure, awarding BML $1.6 billion in damages.
CCA appealed the decision, but the Appellate Division recently upheld the ruling, emphasizing that the evidence supported the trial court’s findings of fraud. Despite this setback, CCA filed for Chapter 11 bankruptcy protection in December 2024, seeking to delay the enforcement of the judgment. This filing was met with resistance from Izmirlian, who argued that CCA was attempting to evade responsibility.
Izmirlian called for the appointment of an independent examiner to investigate CCA’s operations and its dealings with affiliated entities. In response, the U.S. Bankruptcy Court approved the appointment of Todd Harrison, an expert in corporate defense and litigation. Harrison will be tasked with investigating the company’s actions and ensuring that the bankruptcy process is transparent and serves the interests of creditors.
