China Construction America and BML Settle over $1.6B Baha Mar Construction

China Construction America, Inc. (CCA), serving as the general contractor for the Bahamas’ Baha Mar casino resort, have stated that they reached a “comprehensive agreement” with the project’s original owner, BML Properties Ltd., resolving a $1.6 billion legal dispute without acknowledging any wrongdoing.

CCA and BML Properties Reach an Agreement

The deal follows a New York ruling last year ordering CCA, part of state-owned China State Construction Engineering, to pay BML Properties $1.6 billion for committing “many acts of fraud” in its 2016 takeover of Baha Mar. After their appeal was dismissed, the CCA entities filed for Chapter 11 bankruptcy, stating that the move was intended to protect co-defendant stakeholders.

The conflict between BML Properties and the CCA entities arose from BML’s allegation that the entities breached an Investors’ Agreement by failing to meet construction deadlines, deliberately undermining the project to benefit themselves and advance Chinese interests. Baha Mar was originally scheduled to open in December 2014, but after missing that and several subsequent dates in 2015, BML filed for bankruptcy in June 2015. This further contributed to the delays and alleged poor craftsmanship.

It is currently publicly unknown what the terms and conditions of this agreement between CCA and BML Properties are.

Officials Comment on the Settlement

Sarkis Izmirlian, chair of BML Properties Ltd. and the original developer of the Baha Mar resort in Nassau, expressed satisfaction at resolving the matter, stating that the agreement meets the company’s expectations. He highlighted that the economic impact of Baha Mar would be felt for decades and expressed pride in having been the visionary behind the landmark development. Izmirlian also extended his gratitude to the people of The Bahamas for their unwavering support and the numerous letters of encouragement received over the last years.

Meanwhile, Yan Wei, Chairman and CEO of CCA, echoed these feelings, explaining that the company is pleased to have successfully resolved the matter. He explained that the company is now ready to “move forward with clarity and certainty for our employees, customers and partners.”

He reiterated that the CCA remains confident in the strength of its legal arguments. He added that resolving the matter is in the best interests of its stakeholders and will allow the company to focus fully on its strategy of delivering world-class construction projects and hospitality operations. 

Wei also expressed gratitude to the CCA team and partners for their continued support and looked forward to many future opportunities together. The CEO also extended his appreciation to the people and businesses of The Bahamas for their ongoing friendship and trust, emphasizing CCA’s commitment to strengthening relationships in the country.