Baha Mar Developer Sarkis Izmirilian is not letting his dream project go down without fight, calling the takeover by the Hong Kong company Perfect Luck Holdings Limited “an intricate fabrication”.
In an open letter penned to Liu Liange, President of the Chinese Export Import Bank, Mr. Izmirilian said he finds it bizarre that his proposal to re-acquire that stalled mutli-billion dollar resort has not by acknowledged by the government or the bank.
“I sent you two weeks ago today a bona fide proposal to buy Baha Mar at a price superior to any offer “Perfect Luck” or CEXIM has received.
“ As part of my offer, I also made clear that this proposal to acquire Baha Mar would result in, among other benefits, all substantiated Bahamian creditors being paid in full and all Baha Mar employees – both Bahamians and expats – being paid the monies they are owed.
“Bizarrely, CEXIM has not acknowledged receipt of my proposal, nor has anyone associated with the bank, the Receivers, or “Perfect Luck”, made contact with us,” Mr. Izmirilian said.
Mr. Izmirilian added that it does not bode well for the prospects of the resort or country to continue to ignore his proposal.
“It makes neither economic sense nor is it in the best interests for the future of Baha Mar, or The Bahamas, that not one of these related parties have engaged with us to discuss our proposal.
“It is indeed “extraordinary” that the entire sale to “Perfect Luck” has been an intricate fabrication. The fact that the Receivers were not able to find an arm’s length buyer has nothing to do with the quality of the asset and everything to do with a process where bidders were not given information, and were forbidden to meet with stakeholders or to discuss the status of construction with any of the relevant parties,” Mr. Izmirilian said.
He added that sale of Baha Mar to Perfect Luck does not mean the entire process was done fairly but only that the government’s legal team was able to concoct a story good enough to sell to the judge.
“The fact that the Bahamian court signed off on the sale does not mean that a comprehensive and inclusive process was followed. It only means that your lawyers were able to craft a story sufficiently plausible for the bank to sell Baha Mar to itself and conduct a further sale of Baha Mar in even more secrecy.
“Today, Bahamians are still waiting. Construction has not restarted, and the mysterious real buyer has not been identified. So for the record, we reiterate our offer to purchase the Baha Mar assets. We have been in ongoing communication with many industry experts, operators and interested parties, many who have considered their options for pursuing Baha Mar.
“They, like us, question the sincerity of the process and the real goal of the appointed Receivers. They also recognize the unique experience we bring to this significant project given the many hurdles that lie ahead,” Mr. Izmirilian said.
He made one final plea, urging Mr. Liange to seriously reconsider his proposal.
“I urge you engage with us to find a solution to the current impasse, help Baha Mar open quickly and successfully, improve CEXIM’s economic position and maximize value for other stakeholders.
“At this stage no one feels lucky: the thousands of Bahamians out of a job, the contractors not paid, the foreign creditors ignored, the shareholder of CEXIM who is forced to take an enormous write-off on its debt. We present the best option to complete the project and affirm the policy success of CEXIM.
“Together, we will have shown that even when faced with a challenge that we have found the solution and resolved the problem. Why not at least engage in a serious discussion with us to consider whether there is a pathway forward?
“President Liu, I repeat from my offer letter of two weeks ago: together, we can move ahead to a swift and mutually beneficial resolution for Baha Mar, which will result in the resort being open as soon as possible to serve the best interests of The Bahamas, as well as the bank. Now more than ever the country, in its time of need, requires us to come together,” Mr. Izmirilian said.
Mr. Izmirlian’s sentiments come on the heels of Prime Minister Perry Christie noting that the developer would have to go through Perfect Luck and the Chinese EXIM bank to re-acquire the Cable Beach property.
More recently, the Prime Minister revealed that he has reached an agreement with the buyers to have one of the property’s open for the end of the upcoming winter season.
