BML Properties Ltd. comments on CCA Construction Inc. Bankruptcy Announcement

OPENS UP POTENTIAL LIABILITY OF CHINESE PARENT CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (CSCEC) FOR US $1.6 BILLION JUDGMENT AGAINST CCA

NEW YORK--(BUSINESS WIRE)--BML Properties Ltd. today expressed its disappointment in the bankruptcy filing by CCA Construction Inc., formerly known as China Construction America (“CCA”).

Sarkis Izmirlian, chair of BML Properties Ltd. and the original developer of the Baha Mar resort in Nassau, Bahamas, said, “This is just another example of CCA, and its multibillion-dollar parent company China State Construction Engineering Corporation (“CSCEC”) attempting to evade responsibility for its actions by hiding behind a Chapter 11 proceeding.”

In October 2024, New York Supreme Court Justice Borrock handed down a 74-page decision against CCA and its affiliates detailing multiple instances of fraud and usurping funds at the highest levels of CCA related to Baha Mar, and awarded over $1.6 billion to BML Properties. The judgement clearly states that:

• BMLP proved by clear and convincing evidence that the Defendants’ multiple acts of fraud and breaches caused to the Project to miss its opening and BMLP’s subsequent loss of its entire investment.
• The testimony of the Defendants was not credible and was inconsistent with the contemporaneous documents adduced at trial.
• BMLP adduced sufficient evidence to demonstrate that piercing the corporate veil is appropriate.
• The Defendant entities were all subsidiaries of one parent company, CSCEC Holding Company, Inc.
• There was clear and convincing evidence that their acts were an absolute sham and shakedown of Mr. Izmirlian.

“I am confident that both the bankruptcy judge and the New York appellate court will see CCA for what it is, a company fraudulently managed by bad actors. We will take every step necessary to enforce our rights against CCA and all those who orchestrated CCA’s frauds, including its parent CSCEC,” said Izmirlian.

Note to the Editor: China State Construction Engineering Corporation (“CSCEC”) is majority owned by the Chinese Government and traded on the Shanghai Stock Exchange under ticker 601668.