OFF THE CUFF: RG Hotels and Coronado

THE MUDDIED  waters surrounding RG Hotels got murkier  following a Supreme Court  rejection  of a request for the suspension of the foreclosure process that Caja de Ahorros had taken against RG Hotels and a Coronado project.

The petition, filed by the law firm Rubio, Alvarez, Solis and Abrego, is based on the decision of the First Civil Court of Coclé that granted the company bankruptcy protection retroactive to July 31, 2012, which is before loans were granted to the company by the bank.

The ruling, issued by Judge Luis Ramon Fabrega and dated Dec. 29, stated that the request was not properly filed because it only sought to make the court aware of the lower court decision. He also noted that the request was not made within an executive process, which means that the petition could only seek a payment or the prescription of the case reports La Prensa.

The bank’s current administration has sought to foreclose on the properties to recoup a $5 million loan it gave to the company. The loan itself has been the subject of a criminal complaint due to the fact that the properties in question PH Ibiza and PH Ibiza Coronado are social areas of buildings which shouldn’t have been accepted as collateral.