Prosecutors seek to block Coronado auction

THE AUCTION of properties used as collateral by the developer R.G. Hotels for loans granted by Caja de Ahorros is being opposed by prosecutors, yet another twist in the ongoing financial tangle around the bankrupt company.

The properties used as collateral included the social area of the beach project P.H. Ibiza Coronado.

The request to block the sale was made based on the fact that the titles to the social areas may have been improperly transferred to R.G. Hotels officials so that they could be used as collateral for the $5 million loan. Prosecutors are also trying to determine if the bank properly approved the loans.

Prosecutors said the auction of the properties would “prolong the effects of the crime of fraud that is being investigated.”

Caja de Ahorros tried to auction the properties in October, but it was abandoned due to a lack of bidders.