China Construction America and BML Resolve $1.6 Billion Baha Mar Construction Dispute
Settlement Reached Between China Construction America and BML Properties
China Construction America, acting as the general contractor for the Bahamas’ Baha Mar casino resort, has announced that it has reached a comprehensive settlement with the project’s original owner, BML Properties Ltd. This agreement resolves a lengthy legal battle concerning $1.6 billion, with neither party admitting fault.
Background of the Legal Dispute
The settlement follows a New York court ruling that found China Construction America, an affiliate of the state-owned China State Construction Engineering, liable for $1.6 billion due to multiple fraudulent actions connected to its 2016 takeover of the Baha Mar project. After losing an appeal, the involved CCA entities filed for Chapter 11 bankruptcy protection to shield their co-defendants.
The dispute stemmed from BML Properties’ claims that CCA failed to adhere to an Investors’ Agreement, missing construction deadlines and allegedly sabotaging the project to serve their own interests and those aligned with China. The massive Baha Mar resort was originally slated to open in December 2014 but faced repeated delays through 2015, eventually leading to BML declaring bankruptcy in June 2015, which further stalled the project and compounded issues of inadequate workmanship.
Details regarding the exact terms of the settlement remain confidential.
Statements from Key Figures Involved
Sarkis Izmirlian, chairman of BML Properties and the original visionary behind Baha Mar, conveyed his satisfaction with the outcome, emphasizing the long-term economic benefits the resort will bring. He expressed pride in his role and gratitude toward the people of the Bahamas for their support throughout the dispute.
Similarly, Yan Wei, Chairman and CEO of China Construction America, expressed relief at the resolution and readiness to move forward with clarity. He reaffirmed confidence in the company’s legal stance and highlighted the importance of this settlement for stakeholders. Wei also acknowledged the dedication of the CCA team and partners and reiterated the company’s commitment to continuing its constructive relationship with the Bahamas.
