Securities authority checking veracity of bankruptcy filing

A NEW FINANCIAL scandal brewing in Panama has eased the focus on the continuing uncovering of malfeasance in the Ricardo Martinelli, administration as  The Securities Superintendency starts  an administrative inquiry into the $30 million in bonds issued by the developer R.G. Hotels.

The investigation was prompted by a decision of a Coclé judge to grant the developer bankruptcy protections retroactive to 2012, before the bonds were issued. This will mean that the bond holders will not have any claim to assets of the developer.

Superintendent of Securities Marelissa Quintero reported that, as part of the investigation, the entity will verify whether the financial statements presented by R.G. Hotels were “truthful.”

“This investigation will go beyond a simple audit,” said Quintero. “We have to determine whether or not the information presented by R.G. Hotels was truthful, and if there is evidence that there was deception.” Reports La Prensa.

Quintero made it clear that the agency will respect the bankruptcy decision handed down in the case, though she noted that it could potentially undermine investor confidence.

The bankruptcy decision has been challenged before the Supreme Court.

Opponents of the decision have noted that the developer was making debt payments well past 2012, indicating the entity was financially viable.