Bankrupt hotel bondholders chaotic meeting

A MEETING  of creditors of the bankrupt developer R.G. Hotels, intended to create a unified front to recover $30 million from a bond issue, ended in chaos according to  a La Prensa report.

Some 70 creditors turned up at the at a Panama hotel   for th meeting organized by a bondholder who ran a  small ad in La Prensa They were  hoping to hear news about the chances of recovering the tens of millions of dollars owed to them. Instead some left with more concerns than when they arrived

It  was the first  creditors meeting called this year.

The person who staged the  event outlined the  financial catastrophy of the firm had turned into and the importance of unifying so that they could be repaid.

Several creditors were in favor of the initiative. They talked about making a list and forming committees to work on various initiatives. These included pressuring the Superintendency of Securities, which, in the organizer’s view, has shown indifference to the problem . He also recommended a committee be formed to focus on discussing the case in the media.

But the meeting soon devolved into chaos as some of the creditors, some of whom have invested a large  amount of their savings into projects promoted by the developer, began to get emotional. There were also disagreements over which entities should be held accountable and strategies for recovering assets, reports La Prensa.

Some participants said they came out of the meeting with more concerns than they had going in.