Judge sets Tricom motion to extend plan-voting period for evidentiary hearing April 17

By Rebecca Melvin

New York, March 31 - Tricom SA's contested request to extend further its exclusive period to solicit votes on its plan of reorganization was denied by the U.S. Bankruptcy Court for the Southern District of New York on Tuesday, and an evidentiary hearing was set for April 17.

"I'll hear the evidence at that time, and find out what's going on," judge Stuart Bernstein said.

Tricom is seeking to extend exclusivity through May 1. But the Dominican Republic-based telecommunications company faces objections from at least one of three liquidators of offshore banks, which have claims against the company.

Negotiations with the three objecting bank liquidators have been underway for months. A settlement agreement, including intercreditor releases, was closest to being accomplished with Banco Multiple Leon SA, Tricom counsel told the court during a status conference Tuesday.

Tricom has also reached agreement on certain terms with Bancredito (Panama), but negotiations with Bancredit Cayman Ltd. were unlikely to be successful, counsel said.

"Over the last month, we've had communication with Bancredit Cayman, and it doesn't appear that the issues will be bridged," Tricom counsel told the court.

The offshore banks threaten to object to confirmation of Tricom's plan of reorganization, which has already been modified to an all-equity plan, compared to the pre-packaged plan that was to have included equity and $105 million of secured notes to secured creditors.

Tricom filed for bankruptcy on Feb. 29, 2008. Its Chapter 11 case number is 08-10720.

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