NASSAU, BAHAMAS- Sarkis Izmirlian’s BML Properties Ltd. today filed winding-up petitions in the Supreme Court of the Bahamas, seeking the orderly liquidation of CCA Bahamas Ltd. and CSCEC (Bahamas) Ltd. after their failure to satisfy a $1.6 billion judgment against them and CCA Construction Inc.
CCA Bahamas Ltd.’s holdings include the Margaritaville Beach Resort and the British Colonial Hotel. According to court filings made by CCA in the New York Appellate Court, the combined value of these hotels is a “mere fraction of the judgment.”
BML Properties Ltd. is requesting 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 jointly oversee the winding-up process. In this role, KPMG would take custody of the companies’ assets, ensure their proper operation, and investigate potential financial misconduct and other wrongdoings by the Bahamian CCA entities.
These actions follow the October 2024 ruling by the New York Supreme Court, which awarded over $1.6 billion to BML Properties Ltd. against CCA and its affiliates, citing multiple instances of fraud and the misappropriation of funds at the highest levels of CCA in relation to the Baha Mar project. All three companies involved are subsidiaries of the multibillion-dollar Chinese construction conglomerate China State Construction Engineering Corporation (CSCEC).
On December 22, 2024, CCA filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey.
“We are seeking the protection of court-appointed guardians to ensure the continued stable operation of the hotels and the preservation of Bahamian jobs,” said Sarkis Izmirlian, chair of BML Properties Ltd. and the original developer of the Baha Mar resort.
CSCEC Bahamas Ltd. (CSCECB), CCA Bahamas Ltd. (CCAB), and CCA Construction, Inc. (CCA) last month filed an opening brief for an appeal challenging the $1.6 billion judgment awarded to Izmirlian. The appeal argues that the trial court’s decision was fundamentally flawed, citing numerous legal errors and contending that the judgment should be overturned.
The appeal asserts that the trial court ignored key evidence showing that the collapse of the Baha Mar resort was not due to the defendants’ actions but was a direct result of BML Properties’ (BML) gross mismanagement. According to the defendants, BML’s reckless overspending, poor decision-making, and eventual bankruptcy filing led to millions of dollars in unpaid debts to the Bahamian government and local subcontractors. They argue that the liquidation of BML by the Bahamian Supreme Court was the inevitable outcome of these missteps.
The trial court’s $1.6 billion judgment against CCA found the company liable for fraud and breach of contract, accusing it of contributing to BML’s financial collapse. The court pointed to CCA’s $54 million purchase of the British Colonial resort instead of using the funds to pay Baha Mar’s subcontractors, which allegedly triggered a liquidity crisis. Additionally, the court criticized a $2.3 million payment to Notarc Management Group, suggesting it was an attempt to “curry favor” with the Bahamian government.
In response to the judgment, CCA sought an emergency stay to delay enforcement and avoid the potential liquidation of two other resorts it owns—British Colonial and Margaritaville. CCA argued that enforcing the judgment would lead to insolvency, putting at risk the company’s operations and the jobs of hundreds of Bahamians employed at these resorts.
