NASSAU, Bahamas, (CMC) – Prime Minister of The Bahamas Perry Christie Monday announced that the multi-billion-dollar Baha Mar mega resort had been sold to property developer and business conglomerate, CTF BM Holdings Ltd, a subsidiary of the Hong Kong conglomerate Chow Tai Fook Enterprises Ltd.

The announcement of the sale of the US$3.5 billion project, which is expected to feature a Las Vegas-style casino and more than 2,000 hotel rooms, ends months of calls by the main Opposition Free National Movement (FNM) for the government to publicly declare the owners of the property project which has been stalled for several months and missed at least two opening deadlines, after running out of money.

Christie told legislators that the executed sale and purchase agreement represents a significant achievement for The Bahamas and a milestone in the troubled history of the Baha Mar resort.

He said his Government had taken steps to “reach this successful outcome; beginning with the Chapter 11 Bankruptcy filing, the negotiations, the court interventions, the bidding process, and culminating with an overview of the purchaser, CTF, and its vision for the Baha Mar resort.

He said the resort was first scheduled to open in December 2014, then postponed to March 2015. “Both dates were missed, and although construction was more than 95 per cent complete, disputes with the developer Sarkis Izmirlian-led China Construction America to stop work and the Export-Import Bank of China to halt lending,” Christie said.

He said that on June 29, 2015, the Baha Mar group of companies suddenly and unexpectedly filed for Chapter 11 Bankruptcy in Delaware, without the knowledge of the Government and people of The Bahamas.

The Baha Mar Group of Companies also applied to the Supreme Court of The Bahamas to have the Bahamian courts recognise the Chapter 11 proceedings and give effect to them in The Bahamas; an application that the Government opposed.

This application was heard on 20th July, 2015 by the Justice Ian Winder who, on the 22nd July 2015, in an oral ruling refused to grant recognition to the Chapter 11 proceedings and later dismissed the summons.

“We were advised by our US and UK lawyers that the Chapter 11 proceedings in Delaware offered no realistic prospect for a successful reorganisation of Baha Mar. Those proceedings did, however, place Baha Mar, a Bahamian resort owned by Bahamian companies and indebted to thousands of Bahamian creditors, subject to the supervision of the Court in Delaware.”

He said that following the failed negotiations, on 16th July 2015, the attorney general filed a petition for the wind-up of the Baha Mar group of Companies and applied for the appointment of Joint Provisional Liquidators.

“The Supreme Court agreed that there was no justification for subordinating Bahamian insolvency proceedings to be under the jurisdiction of the court of Delaware, or for compelling thousands of Bahamian creditors to participate in such bankruptcy proceedings.

“In October 2015, the Export-Import Bank of China, as secured creditor, exercised its right under the debenture, and appointed joint receiver managers to take control of Baha Mar’s properties.”

Christie said much of the detailed information surrounding the acquisition remains sealed, and that he is only now able to speak within the confines of the court order.

He said construction at the property has commenced once again and Baha Mar is now back on a path for phased opening, beginning in April 2017, and full completion by next fall.

“Baha Mar is anticipated to generate approximately 315,000 additional air passenger guests annually to The Bahamas. This is a 19 per cent increase over the total arrivals in 2015. The extensive improvement in conditions at the Lynden Pindling International Airport continues to bolster airline confidence and enthusiasm to facilitate growth of aircraft movements.”

Christie said that in the coming months, imminent economic opportunities will be realised in more and more homes throughout The Bahamas.

“Baha Mar will create an estimated 5,500 to 7,000 jobs for Bahamians. Furthermore Mr Speaker, the economic and fiscal effects will not only be felt by those Bahamians employed, but will also benefit a plethora of Bahamian businesses, both large and small.

“Baha mar will undoubtedly add to our tourism product, and significantly impact growth and economic prosperity in our Country. This is a new day for The Bahamas.

“Baha Mar is on track to realise its potential as a premier destination resort, a major employer, and an important contributor to the entire Bahamian economy. This outcome is good for The Bahamas, and great for the Bahamian people,” Christie told Parliament.