R&G Financial gets delay of disclosure statement hearing to Sept. 26

By Jim Witters

Wilmington, Del., Aug. 5 - R&G Financial Corp. is seeking to postpone its disclosure statement hearing to address concerns raised about the statement and its liquidation plan, according to documents filed Friday in the U.S. Bankruptcy Court for the District of Puerto Rico.

Judge Enrique S. Lamoutte Inclan granted the motion, moving the hearing to 10 a.m. ET on Sept. 26 from Aug. 16.

After R&G presented its liquidation plan and disclosure statement in May, the debtor received comments "from many interested parties," the Friday filing stated.

"To the best of its ability, the debtor has worked with these interested parties to resolve their comments and concerns," but the debtor has been unable to address all the issues, the motion stated.

"The debtor believes that it will need to make additional modifications to the plan and disclosure statement in order to ensure that these documents address the comments and concerns that it has received from interested parties and comply with the requirements necessary to solicit acceptances of its plan," the motion stated.

Under the plan filed in May, the company's assets would be monetized and distributed to creditors.

Treatment of creditors would include:

• Holders of administrative claims, non-Federal Deposit Insurance Corp. priority claims and priority tax claims will be paid in full in cash;

• Holders of secured claims will either be paid in full in cash or receive the collateral securing their claims;

• Holders of FDIC priority claims will receive net free cash as available until paid in full;

• Holders of general unsecured claims and subordinated notes claims will receive a distribution of residual net free cash, for an estimated 0.30% to 2.3% recovery; and

• Preferred stock interests and common stock interests will be deemed canceled.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.