Baha Mar Ltd. has filed a plan outlining the way the $3.5 billion stalled resort project in the Bahamas hopes to restructure in chapter 11 ahead of a hearing today to dismiss its U.S. bankruptcy case, the Wall Street Journal reported today. The structure of the proposed plan swaps the ownership of Baha Mar for new financing, meaning whoever finances the project will end up owning the Bahamian resort, a key driver of the island nation’s economy. The plan also issues replacement debt to the resort’s current lender and unsecured creditors. So far, the project has been largely funded by China’s Export-Import Bank, which is already owed $2.4 billion. However, the new round of financing in Baha Mar’s proposal is theoretical at this point, with no lender or amount named in court documents. Baha Mar has estimated that it will require at least $300 million to complete the project, and previous negotiations included the Export-Import Bank of China and Baha Mar chairman Sarkis Izmirlian each putting forth a piece of the financing. Another proposal had the bank teaming up with the project’s contractor, China Construction America Inc., to fund the completion. No deal was reached during those negotiations.
