Three US-based subsidiaries of Chinese state-owned construction giant China State Construction Engineering have filed a notice of appeal against a recent decision by the New York State Supreme Court that found it engaged in “many acts of fraud” in relation to Bahamas integrated resort Baha Mar.
The notice, jointly filed by CCA Bahamas, CSCEC Bahamas and CCA Construction Inc and dated 29 October 2024, comes after the court found the entities liable to pay BML Properties – the original developer of Baha Mar – a total of US$1.6 billion. The figure comprises BML Properties’ entire US$845 million investment plus interest dating back to May 2014.
BML Properties, which filed for bankruptcy in June 2015 after Baha Mar missed a series of opening deadlines, had accused CCA of deliberate poor craftmanship. The project was at the time handed over to a liquidator before the Bahamian government announced it had reached a deal with CCA to resume construction while it looked for a buyer, later revealed to be Hong Kong jewelry giant Chow Tai Fook Enterprises.
A New York State Supreme Court judge ruled earlier this month that CCA as contractor had “committed fraud beyond any doubt” by forcing the collapse of the project in order to enrich itself and ensure Chinese interests claimed control, however CCA’s appeal alleges BML Properties brought about its own demise.
In a statement sent to Inside Asian Gaming overnight, a spokesperson for the defendants said,”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.”
CCA previously issued a statement to IAG in which it accused BML Properties of deliberately running the property into the ground to avoid honoring its obligations.
Baha Mar operator Chow Tai Fook, controlled by the Cheng family, also holds interests in Australia’s Star Entertainment Group and Vietnam’s Hoiana, and has links to Macau concessionaire SJM via chairman Henry Cheng’s 10% stake in STDM.
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