Baha Mar, Ltd’s US bankruptcy just hit a snag.
A Bahamian Judge denied Baha Mar’s request for recognition of its bankrtupcy filing in Delaware Federal Court.
The ruling means that the company’s Bahamian assets will not be protected by Baha Mar’s bankruptcy filing from earlier this month.
“We respect Justice Winder’s ruling and look forward to understanding his reasoning, but we are nonetheless disappointed by the result,” Baha Mar Ltd said in a statement Wednesday. “We are even more disappointed in the way the Government has responded to our Chapter 11 filing over the past several weeks. We hope the Government will stand by its word to be an impartial mediator in our efforts to protect our investment and bring the project to completion.”
The company said it did not believe that the ruling “assures the necessary protection for the assets of Baha Mar.”
“We do not believe that it is best for the over 2,500 current employees of Baha Mar,” the company said. “We note that the stay granted by the U.S. Bankruptcy Court remains in effect, and takes on increased importance in light of this ruling, as all parties must still address that prohibition on the exercise of remedies.”
The company said that it was “making progress toward reaching a consensual resolution.”
“If all parties are willing, this resolution can happen,” the company said. “For the sake of all concerned, not least our employees, it must happen.”