US$1.6 billion legal dispute over Baha Mar casino-resort finally settled as contractor and original owner reach “comprehensive agreement”
Summary
China Construction America (CCA) and BML Properties Ltd have reached a ‘comprehensive agreement’ that resolves a US$1.6 billion legal dispute stemming from control and construction of the Baha Mar resort in the Bahamas. The settlement, which does not include any admission of liability from the CCA entities, will see BML and owner Sarkis Izmirlian drop claims in the US and the Bahamas, subject to approval from the US Bankruptcy Court in New Jersey.
The case follows a 2024 New York court decision ordering CCA to pay US$1.6 billion after finding ‘many acts of fraud’ connected to CCA’s takeover of the project in 2016. CCA’s appeal was dismissed earlier in 2025 and the contractor later filed for Chapter 11 bankruptcy protection. Terms of the agreement have not been disclosed. CCA says the deal will let CCA Bahamas Ltd retain interests in the British Colonial and Margaritaville Beach Resort hotels in Nassau and help the company focus on its broader construction and hospitality strategy.
Key Points
- The agreement resolves a long-running US$1.6 billion dispute between CCA entities and BML Properties, subject to US Bankruptcy Court approval.
- CCA was previously ordered by a US court to pay US$1.6 billion after being found to have committed ‘many acts of fraud’ in relation to Baha Mar.
- CCA’s appeal was dismissed and the company filed for Chapter 11 in parallel to protect stakeholders while negotiating resolution.
- Specific settlement terms remain undisclosed; no admission of liability was made by the CCA entities in the announcement.
- CCA says the deal allows CCA Bahamas Ltd to keep ownership stakes in two Nassau hotels, which it frames as beneficial to the Bahamian community.
- The dispute centred on alleged breaches of an Investors’ Agreement, missed construction deadlines and claims that CCA intentionally undermined the project to secure control.
Context and relevance
This settlement closes a high-profile chapter in international construction and hospitality disputes involving a state-linked Chinese contractor, major financing from China Exim Bank and a flagship Caribbean resort. For the Bahamas, it removes significant legal uncertainty over a major tourist asset and signals a pathway for the contractor to preserve local investments. For developers, financiers and operators across the region, the case underscores risks around contractor selection, cross-border financing conditions and the reputational impacts of prolonged litigation. The outcome — particularly given the lack of disclosed terms — may leave questions about precedent for fraud findings and enforcement of investor protections in multinational projects.
Why should I read this?
Want the short version? This finally ends the drama that tied up Baha Mar and cost everyone time, money and headlines. If you work in regional gaming, resort development, project finance or just want to know how big disputes involving state-linked builders get wound down — this is relevant. It affects investor confidence, how big projects are financed and who gets to run them. Read it if you care about the fallout and the signals it sends to the industry.
Author style
Punchy — this is a major, industry-shaping development. If you’re in the sector, the detail matters: legal precedent, governance questions and implications for future China-backed construction deals are all worth a closer look.
