R&G Financial seeks second exclusivity extension to address issues

By Caroline Salls

Pittsburgh, Dec. 6 - R&G Financial Corp. requested a second extension of its exclusive periods to file and solicit votes on a plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the District of Puerto Rico.

The company wants to extend its exclusive filing period to March 1 from Dec. 31 and the solicitation period to April 30 from March 1.

According to the motion, R&G is in the process of negotiating a plan, but the structure of the plan will be greatly influenced by a number of issues the company is still addressing.

The company said these issues include the resolution of an investigation of directors and officers claims, negotiations with FirstBank, the results of an upcoming Internal Revenue Service administrative proceeding and R&G's investigation of Federal Deposit Insurance Corp. and Puerto Rico Department of the Treasury claims.

R&G, a San Juan, Puerto Rico-based bank holding company, filed for bankruptcy on May 14, 2010. The Chapter 11 case number is 10-04124.

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