Tricom, ad hoc creditors committee object to Bancredit motion to appoint examiner

By Jennifer Lanning Drey

Portland, Ore., March 31 - Tricom SA and an ad hoc committee of Tricom creditors objected to Bancredit Caymen Ltd.'s motion asking the court to appoint an examiner in the company's Chapter 11 case, according to filings made Monday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Bancredit requested that an examiner be appointed to study reports filed by Tricom's special committee and BDO Seidman, as well as to investigate actions taken by former Tricom chairman and chief executive officer Manuel Pellerano and their effects on "non-insider creditors."

Tricom and the ad hoc committee claim that Bancredit has failed to establish grounds for the appointment of an examiner and that the appointment of an examiner is not mandatory for the Chapter 11 process to move forward.

The objectors believe the court should not rule on the examiner motion until after Tricom's April 15 plan confirmation hearing.

"The delay, expense and uncertainty attendant to the appointment of an examiner would pose a significant threat to [Tricom's] ability to proceed with a swift confirmation of the plan," the company said.

Tricom also argued that the costs associated with hiring an examiner would be "staggering."

"This eleventh-hour filing is for the obvious purpose of holding plan confirmation hostage in order to leverage a settlement of its meritless claims," Tricom's ad hoc creditors committee said in its separately filed objection.

Bancredit accusations

As previously reported, Bancredit operated a registered bank in the Dominican Republic that is now protected under Chapter 15 bankruptcy. Bancredit contends that Pellerano misappropriated at least $120 million of funds from Bancredit's depositors for the benefit of Tricom.

According to the motion requesting the appointment of an examiner, Pellerano still maintains control of Tricom through GFN Corp. and its affiliated companies, and "now Tricom and Pellerano intend to forever preclude Bancredit from attaining relief for its depositors" with respect to its $120 million claim.

"It is apparent from the plan and disclosure statement filed by Tricom that the plan - pre-negotiated by [Tricom's] insiders and the ad hoc committee - is structured to benefit Pellerano, his family members, and their affiliated companies including GFN at the expense of certain other creditors," Bancredit said in its filing.

Bancredit is a Cayman-registered bank owned by a member of GFN Group, which is a wide range of companies controlled by Pellerano. According to the filing, Pellerano was convicted in the Dominican Republic of activities related to Bancredit's 2003 collapse.

Tricom made a pre-packaged Chapter 11 bankruptcy filing on Feb. 29.

The company is a full-service telecommunications provider based in the Dominican Republic. Its Chapter 11 case number is 08-10720.

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