The Baha Mar Resort in Nassau, Bahamas, which was set to open this past March, has filed for Chapter 11 bankruptcy protection in order to complete construction and open as soon as is practical, according to a statement by Sarkis Izmirlian, chairman and CEO of Baha Mar Ltd., the developer. The measure was taken due to the financial consequences of repeated delays by the general contractor, China State Construction. The filing was made in the U.S. Bankruptcy Court in Delaware. Baha Mar will file an application with the Supreme Court of the Bahamas seeking approval of the U.S. court orders.
Izmerlian said the general contractor repeatedly has missed construction deadlines, which caused sizable delay costs and forced the resort to postpone its opening. The original opening date had been set for December 2014. After China State guaranteed that the resort would open on March 27, 2015, Baha Mar undertook a number of preparations, including the hiring and training of close to 2,000 employees, and the purchase of goods and services, but construction still has been not completed. Baha Mar hotels include the Grand Hyatt, the Rosewood, the Baha Mar Casino & Hotel and the SLS Lux. The project's fifth hotel and lone pre-existing property, the Melia Nassau Beach, will continue to operate during the Chapter 11 proceedings.