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

KEYWORDS: CCA

Morristown, New Jersey, December 22, 2024 – CCA Construction, Inc. (“CCA” or the “Company”) today announced it has taken strategic actions to protect its interests and those of its stakeholders following the New York State Supreme Court’s erroneous decision in the Baha Mar resort dispute with BML Properties. The actions are designed to preserve CCA’s pursuit of its appeal of the Court’s flawed analysis and to protect the interests of CCA’s stakeholders during the appeals process.

Consistent with these objectives, CCA 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 CCA. The chapter 11 case does not include any of CCA’s subsidiaries, including Plaza Group Holdings LLC, CCA 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 CCA to join its co-defendants, CCA Bahamas Ltd. (“CCAB”) and CSCEC Bahamas, Ltd. (“CSCECB”), in pursuing an appeal of the New York State trial court decision. Non-debtor defendants CCAB and CSCECB are not subsidiaries, parents or shareholders of CCA and are not included in CCA’s chapter 11 case.

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

The Company has filed “first day” motions to obtain the requisite court authority for CCA to continue operating its business in the ordinary course for the duration of the chapter 11 process. CCA’s parent company, CSCEC Holding Company, Inc. is providing the Company $40 million in debtor-in-possession (“DIP”) financing. CCA 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 CCA’s 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 CCA Construction, Inc.

CCA operates mainly in East Coast and Gulf Coast states. As an accomplished contractor, CCA 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.