BML Properties Ltd, the original developer of Bahamas resort Baha Mar before a dispute with former construction partner China Construction America (CCA) saw it lose control, has filed another motion with a US court, this time seeking the appointment of an Examiner to investigate CCA’s dealings with affiliates and fraudulent transfers.
The motion, which runs parallel to Winding Up Petitions it filed against CCA’s co-judgment debtors CCA Bahamas Ltd and CSCEC (Bahamas) Ltd earlier this month, relates to CCA’s filing of Chapter 11 bankruptcy in December.
According to information from BML, the motion argues that an Examiner is needed to “identify instances of fraud, dishonesty, incompetence, misconduct, mismanagement or irregularity in the management of CCA’s affairs.”
It also states that “pervasiveness of fraud and the lack of credibility on the part of CCA’s witnesses that were all proven in the August 2024 New York Supreme Court trial indicates a high likelihood that CCA’s misconduct in the Baha Mar project was no aberration.”
In response, to this latest motion, a spokesperson for CCA told IAG, “BML Properties’ latest attempt to frustrate the orderly administration of the chapter 11 proceedings betrays its concern about our appeal of the trial court’s wrongful decision, and we look forward to arguing our case before the New York appellate court. In the meantime, CCA Construction Inc is complying fully with the Bankruptcy Court’s requirements, including by providing extensive discovery to BML Properties.”
CCA was in October ordered to pay BML Properties a total of US$1.6 billion after a trial court found it had committed “many acts of fraud” in assuming control of the property in 2015. However, the company and associated entities have filed an appeal and counterclaims against BML, which it alleges “bombed” its own deliverables ahead of the resort’s planned 2015 opening.
Baha Mar is currently operated by Hong Kong jewelry group Chow Tai Fook.
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