China Construction America and BML Settle over $1.6B Baha Mar Construction
Summary
China Construction America (CCA) and BML Properties Ltd have reached a comprehensive settlement that resolves a US$1.6 billion dispute over the construction of the Baha Mar resort in the Bahamas. CCA has not admitted wrongdoing.
The settlement follows a New York judgement that ordered CCA to pay $1.6bn after finding the company responsible for “many acts of fraud” in connection with its 2016 takeover of the project. After their appeal was dismissed, CCA entities filed for Chapter 11, saying the move was to protect co-defendant stakeholders.
The dispute stems from BML’s allegations that CCA breached an Investors’ Agreement by missing construction deadlines, undermining the project and contributing to delays and poor workmanship. Baha Mar was due to open in December 2014; missed openings and continued problems led BML to file for bankruptcy in June 2015. The specific terms of the settlement have not been made public.
Key Points
- CCA and BML reached a settlement resolving a $1.6 billion legal dispute without CCA admitting wrongdoing.
- The agreement follows a New York ruling that found CCA liable for serious misconduct linked to its 2016 takeover of Baha Mar.
- CCA filed for Chapter 11 after its appeal was dismissed, citing protection for other stakeholders.
- BML accused CCA of missed deadlines and actions that worsened delays; Baha Mar missed its planned December 2014 opening and BML filed for bankruptcy in June 2015.
- Neither party has disclosed the settlement terms; both leaders expressed relief and emphasised the need to move forward.
Context and Relevance
The Baha Mar litigation has been a high-profile example of the risks in megaproject delivery, cross-border contracting and the involvement of state-linked contractors in large hospitality developments. Resolving this long-running dispute clears a major legal obstacle for a landmark Bahamas resort and could influence how developers, contractors and financiers handle similar disputes in the future.
Why should I read this?
Quick and blunt: a huge, long-running legal mess around a flagship resort just got tied up. If you track casino and hospitality investments, international construction risk, or how big contractors handle fallout, this is worth five minutes. Both sides say they’re done with the drama, terms are private, and now everyone can get back to business — or at least pretend to.