Another blow for local stock market
CONFIDENCE in Panama’s stock market has taken another beating with the news that a company directed by former Chamber of Commerce President José Luis Ford, has failed to pay debts owed to investors of almost $20 million over the past four years.
On Jan. 4 Financiera La Generosa failed to pay $4 million. It also failed to make $4 million and $8 million payments in 2014 and 2015, respectively.
There is another $6 million in debts whose promised capital subscriptions were not executed last year.
The company’s situation, together with the financial meltdown of R.G. Hotels, which owes bondholders some $30 million, and the unresolved scandal of manipulation of Petaquilla mining shares,has shaken confidence in the local stock market.
La Generosa has told investors that its goal remains to repay investors.
On Dec. 22, Panama Stock Market officials published a notice reiterating the need for the company to face investors.
That followed up a Nov. 11 statement that had called for a meeting to take place before the end of that month. The officials want the company to explain the financial situation of the company, the status of each of the bond issues and compliance with the obligations to investors.
The company has promised to hold the meeting this month, but no date has been set.
