BML Properties Ltd, the original developer of the Baha Mar resort in the Bahamas, has filed a motion in a US court requesting the appointment of an Examiner to investigate alleged fraud and misconduct by its former construction partner, China Construction America (CCA).
The motion alleges irregularities in CCA’s dealings with affiliates and claims that fraudulent transfers were made during the Baha Mar project. This filing follows Winding Up Petitions lodged earlier this month against CCA Bahamas Ltd and CSCEC (Bahamas) Ltd, both co-judgment debtors of CCA, which filed for Chapter 11 bankruptcy in December 2024.
BML contends that the Examiner is necessary to expose fraud and mismanagement, citing findings from a 2024 New York Supreme Court trial where CCA was ordered to pay $1.6 billion in damages after being found guilty of “many acts of fraud”. BML claims this behaviour was part of a broader pattern.
CCA, however, dismissed the motion, accusing BML of attempting to disrupt its bankruptcy proceedings and confirming compliance with the court’s discovery requirements. The company has appealed the $1.6 billion (€1.3 million) judgment, arguing BML sabotaged its own project deliverables ahead of the resort’s 2015 opening.
For the unaware, the dispute between BML Properties and China Construction America (CCA) has been ongoing for years, with BML accusing that CCA breached their Investors’ Agreement (IA) by failing to meet construction deadlines and orchestrating the project’s collapse to serve Chinese interests.
During the 2008 global financial crisis, BML’s Sarkis Izmirlian secured $2.45 billion (€2.34 billion) in funding from China’s Exim Bank to develop the Baha Mar resort. However, the agreement required CCA to act as the general contractor and allowed the importation of 8,000 Chinese construction workers, benefiting China’s domestic economy.
In addition to the Exim Bank’s funding, CCA contributed $150 million (€143.5 million), while BML invested $845 million (€808 million) into the project.
Originally scheduled to open in December 2014, the resort faced significant delays, missing its launch date and subsequent deadlines throughout 2015. By June 2015, with the project reportedly 97 percent complete, BML filed for bankruptcy, accusing CCA of deliberate poor craftsmanship.
The dispute has since evolved into a major legal battle involving allegations of fraud, counterclaims, and appeals. BML maintains that CCA’s actions were calculated to ensure Chinese control over the project, while CCA denies the allegations and has accused BML of failing to meet its deliverables.
As a result, none of the entities currently holds the operator rights to the Baha Mar resort, which is now managed by Hong Kong’s Chow Tai Fook Jewellery Group. The legal battle continues to escalate, with the motion to appoint an Examiner against CCA dealing a significant blow to the company.
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