Bankruptcy court sets Tricom estimation trial to begin July 25

By Rebecca Melvin

New York, April 15 - The Tricom SA estimation trial start date has been set for July 25 by the U.S. Bankruptcy Court for the Southern District of New York in response to the company's request regarding claims of creditors Bancredit Cayman Ltd. and Bancredito Panama, SA.

Tricom is asking the court to estimate Bancredit Cayman's alleged $120 million "wrongful transfer" claim at $120,000 and Bancredito Panama's claim at zero for purposes of plan confirmation.

Bancredit Cayman, which operated a registered bank in the Dominican Republic that is now protected under Chapter 15 bankruptcy, contends that Tricom owes it at least $120 million.

Bancredito Panama has never filed any complaint or proof of claim against the company, but the bank is attempting to hold the company responsible for payment on a $70 million loan made to third-party borrowers to fund their purchase of class A common stock from Tricom, according to the Tricom motion.

Under the schedule set Tuesday, those parties have until April 30 to file proofs of claim.

As previously reported, Tricom filed for bankruptcy protection due to a combination of economic factors that began in 2001, contributing to a decline in its operating performance, financial condition and ability to satisfy unsecured financial claims.

Tricom said these factors included a worldwide decline in the telecommunications sector, adverse economic conditions brought on by the events of Sept. 11, 2001, the Dominican Republic's banking crisis of 2003, the company's unprofitable investments in new business segments and increased competition in Dominican markets for local, long distance and mobile services.

A full-service telecommunications provider based in the Dominican Republic, Tricom filed for bankruptcy on Feb. 29. Its Chapter 11 case number is 08-10720.

© 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.