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kok体育 Construction, Inc. Takes Strategic Actions to Address Wrongful New York State Court Decision and Protect Interests of all Stakeholders

KEYWORDS: kok体育

Morristown, New Jersey, December 22, 2024 鈥� kok体育 Construction, Inc. (鈥渒ok体育鈥� or the 鈥淐ompany鈥�) today announced it has taken strategic actions to protect its interests and those of its stakeholders following the New York State Supreme Court鈥檚 erroneous decision in the Baha Mar resort dispute with BML Properties. The actions are designed to preserve kok体育鈥檚 pursuit of its appeal of the Court鈥檚 flawed analysis and to protect the interests of kok体育鈥檚 stakeholders during the appeals process.

Consistent with these objectives, kok体育 today commenced a chapter 11 case under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. The court-supervised process provides, among other things, for an automatic stay of enforcement of any claim or pursuit of any litigation against kok体育. The chapter 11 case does not include any of kok体育鈥檚 subsidiaries, including Plaza Group Holdings LLC, kok体育 Civil, Inc, China Construction America of South Carolina, Inc., Strategic Capital (Beijing) Consulting Co., Ltd., its parent company CSCEC Holding Company, Inc, or any other affiliates, the business and operations of which will continue as normal.

The Company intends to ask the Bankruptcy Court to modify the automatic stay and authorize kok体育 to join its co-defendants, kok体育 Bahamas Ltd. (鈥渒ok体育B鈥�) and CSCEC Bahamas, Ltd. (鈥淐SCECB鈥�), in pursuing an appeal of the New York State trial court decision. Non-debtor defendants kok体育B and CSCECB are not subsidiaries, parents or shareholders of kok体育 and are not included in kok体育鈥檚 chapter 11 case.

Yan Wei, Chairman & CEO of kok体育, said: 鈥淥ur actions today are intended to protect kok体育鈥檚 right to appeal the New York state court鈥檚 fatally flawed decision and preserve the value of kok体育 for the benefit of all stakeholders while the appeal process plays out. The record is clear that BML Properties鈥� losses were entirely the result of its own gross mismanagement and irresponsible actions, and that the lower court鈥檚 decision suffers from multiple, insurmountable errors of law. Among its many failings, the lower court鈥檚 decision completely ignores the reality that kok体育 was not involved at all in the Baha Mar construction project. We look forward to presenting our arguments to the appellate court.鈥�

The Company has filed “first day” motions to obtain the requisite court authority for kok体育 to continue operating its business in the ordinary course for the duration of the chapter 11 process. kok体育鈥檚 parent company, CSCEC Holding Company, Inc. is providing the Company $40 million in debtor-in-possession (鈥淒IP鈥�) financing. kok体育 expects the DIP financing will provide it with sufficient liquidity to continue operations in the ordinary course during the chapter 11 process. CSCEC Holding has also agreed to provide additional funding directly to kok体育鈥檚 subsidiaries so that they have the funding they need to continue their operations in the ordinary course during the duration of the chapter 11 case.

About kok体育 Construction, Inc.

kok体育 operates mainly in East Coast and Gulf Coast states. As an accomplished contractor, kok体育 provides services including program management, construction management, general contracting, design-build and public-private partnerships (PPP) for public and private clients. Its practical business approach and ambitious, yet prudent, development strategies enable the company to deliver high-profile and nonpareil commercial, residential, educational, industrial and heavy construction projects.