Baha Mar, the much-anticipated mega-resort in the Bahamas, has just filed for bankruptcy.
Estimated to cost a staggering $3.5billion, the super-development Baha Mar – The New Riviera had hoped to include five fully-distinct resort hotels and stretch across 3,000ft of Nassau’s pristine Cable Beach.
But Baha Mar’s future is now uncertain following Monday’s announcement that the resort has filed for Chapter 11 under the U.S. Bankruptcy Code.
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At a staggering $3.5 billion, the Baha Mar – The New Riviera, is the Caribbean’s largest luxury resort projectTour the Baha Mar’s promised lavish mega-resort now bankrupt
In a statement posted on the super-resort’s website, the company explains that in order to ‘complete construction and open Baha Mar as soon as practicable’ they have voluntarily undertaken the process of Chapter 11.
The sprawling complex currently sits unfinished, despite initial reports of a December 2014 opening.
‘We are committed to doing all we realistically can to move Baha Mar forward to be completed and opened successfully,’ the statement continues.RELATED ARTICLES
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‘We are confident that once opened, Baha Mar will be a world-class destination resort that will attract guests from around the world and serve as a key economic sparkplug in The Bahamas.’
Aside from five distinct hotels, the development is also set to include a Jack Nicklaus golf course and a villa designed by Lenny Kravitz.
Bahamian hotelier Sarkis Izmirlian, the man behind the project, is Baha Mar’s chairman and CEO, and has also issued a statement about the hotel’s legal issues.
‘I am committed to doing all I realistically can to move Baha Mar forward to be completed and opened successfully,’ he said, reports Hotel Chatter.
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However, on Monday, the company filed for bankruptcy under Chapter 11 following a stalled development
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Initially, the sprawling multi-hotel complex has estimated a December 2014 opening date
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The super-resort is expected to include five distinct hotels when it’s completed, including the Rosewood
He also attributed some of the delays in development to the project’s contractor, China Construction America, missing deadlines.
‘The general contractor repeatedly has missed construction deadlines,’ he said.
‘This has caused both sizeable delay costs and forced the resort to postpone its opening. Unable to open, the resort has been left without a sufficient source of revenue to continue our existing business.’
A lawsuit was filed against the general contractor on Tuesday.
And while Izmirlian assures travellers that any issues with development will be ‘remedied’ through this process, some sources believe that the project could be sold off.
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The Grand Hyatt is another hotel expected to be included in the resort, though that is uncertain right now
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A lawsuit was filed against the resort’s general contractor on Tuesday after they ‘missed deadlines’
MailOnline Travel contacted Baha Mar for additional comment on Sunday.
A spokesperson for the development from Kekst and Company said: ‘Baha Mar as part of the Chapter 11 process has received, among other things, approval from the U.S. Court to pay suppliers and vendors for goods and services post the commencement of the Chapter 11 process.
‘Baha Mar is seeking the recognition of the Bahamian Supreme Court for approval of this and other things involving the U.S. Court with respect to Baha Mar’s Chapter 11 process.