Baha Mar Resort Files Restructuring Plan in U.S. Court

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 Friday to dismiss its U.S. bankruptcy case, The Wall Street Journal reported. 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. An insolvency proceeding is also pending before the Supreme Court of the Bahamas, a court that has refused to recognize the rulings of the U.S. court. A judge in the Bahamian proceeding heard arguments last week and is scheduled to rule Sept. 4 on whether that case will be thrown out or a court-appointed liquidator will take the reins of the project. Read more. (Subscription required.)