Cozumel Caribe foreign representative eyes closure of Chapter 15 case

By Sarah Lizee

Olympia, Wash., Feb. 18 – Cozumel Caribe, SA de CV’s foreign representative is seeking closure of the company’s Chapter 15 bankruptcy proceedings, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

On Oct. 20, 2010, the court granted recognition to the concurso proceeding filed before the Third District Court for the State of Quintana Roo as a foreign main proceeding.

On Dec. 20, 2011, CT Investment Management Co., LLC began an adversary proceeding seeking entry of an order declaring that certain funds deposited in U.S. accounts were not property of the debtor and that CT could exercise its rights in said funds pursuant to two promissory notes executed and issued by the debtor and some of its non-debtor affiliates in favor of Bear Stearns Commercial Mortgage, Inc.

CT and the debtor have agreed to settle the matter, the foreign representative said Thursday.

In connection with the negotiated settlement agreement and limited release, among other things, the debtor and the other debtor-affiliated signatories to promissory notes will release the $9.28 million in reserve funds, holdback funds and lockbox account payments, the purchase of the promissory notes for $40.72 million, termination of all litigation among the parties, and the exchange of mutual releases.

The foreign representative has also filed a motion seeking approval of the settlement agreement.

As part of the settlement agreement, the parties agreed that the foreign representative would request that the court close the Chapter 15 proceedings and the adversary proceeding.

Cozumel Caribe, a Mexican tourism and hotel company, filed for bankruptcy on July 20, 2010. Its Chapter 15 case number is 10-13913.

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