Saturday 15 May 2021

Court rejects Aldesa’s appeal against ruling for judicial intervention

Judges ratified that the company could not prove the successful notification of a total of 200 creditors of Aldesa Corporación de Inversiones, within the established term; the company may now be headed for bankruptcy unless it can find other legal ways to pay back investors

Aldesa Corporación de Inversiones will have to explore other possibilities to reorganize the payment to its investors and avoid bankruptcy, after reporting illiquidity problems that affect their real estate project business.

Judges ratified that the company could not prove the successful notification of a total of 200 creditors of Aldesa Corporación de Inversiones, within the established term; the company may now be headed for bankruptcy unless it can find other legal ways to pay back investors

On August 7, the Tribunal Segundo de Apelación Civil de San José (Second Court of Civil Appeal of San José) reaffirmed what the Bankruptcy Court had previously decided on the impossibility of opening a judicial intervention process (a process akin to a Chapter 11 in the U.S.) because Aldesa Corporación de Inversiones could not prove that it successfully notified all its creditors in the established term.

- Advertisement -

The judgment of the court of appeals states that it was not possible to continue with Aldesa’s request because the firm presented incomplete, disorderly documentation and that it was difficult to verify that it successfully notified its more than 200 creditors involved.

“In complex cases such as this one, a high level of cooperation is required by stakeholders. Their efforts must not only be clear and concrete, but also the information and documentation presented must be ordered and simple to verify,” said the court.

Although the court acknowledges that it is difficult to duly notify all creditors because some are outside the country, it also noted that the submission of documents was incomplete and in some cases late.

The Aldesa Group had to complete the notifications to all its affected investors within five days after the submission of the request.

- Advertisement -

The court judges Deyanira Martínez, Carlos Dalolio and Farith Suárez, in their resolution, argued that Aldesa Corporación de Inversiones ignored specifying the dates on which it delivered each communication, among other omissions.

Though several investors who contacted the Q said they had received a letter from Aldesa of the court decision, the company, however, indicated, this Saturday, August 10, that it has not yet received the official court notification.

The president of Aldesa, Javier Chaves, was arrested on Monday, June 10, 2019 following a raid on his home and Aldesa offices.

“We are assessing the legal options we still have to pay all investors and avoid bankruptcy, which would directly harm creditors. On Monday we will be issuing an official statement on that matter,” said the company.

On March 8, Aldesa said that if it could move forward in the approval of the legal process it would work in an accelerated way to execute the rescue plan, monetize the real estate projects and honor the commitments with its creditors; but that if the judgment of the Court of Appeal was negative – as finally occurred- the option would be a bankruptcy process that would cause irreparable harm to all involved.

The company’s objective was to obtain permission to suspend payments, for a term of three years, and at lower interest rates, to a group of more than 500 clients of the private real estate project business for investments of US$200 million.

- Advertisement -

More on Aldesa:

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Legislators open the way for venture capital investors to arrive in Costa Rica

QCOSTARICA - Legislators adjusted the bill that aims to encourage the...

Costa Rica wants to attract foreign pensioners and rentiers

QCOSTARICA - The minimum amount of capital investment that a foreign...

MOST READ

Costa Rica ranks first in human talent in Central America

QCOSTARICA - The Global Talent Competitiveness Index (IGCT) 2020 revealed that out of 132 countries, Costa Rica ranks 37th in human talent with a...

A perfect storm: What’s behind the Colombia protests?

QCOLOMBIA – Colombia has been roiled by nationwide, anti-government protests for more than two weeks, with the city of Cali emerging as the epicenter. Protesters...

The 20 best places to visit in Costa Rica

LONELY PLANET - Costa Rica is famous for its lush coasts, biodiverse jungles, stunning waterfalls, and dramatic volcanoes – not to mention a mix...

Costa Rica receives the largest shipments of vaccine in one week: 212,820 doses

QCOSTARICA - The landing of two separate and independent shipments of covid-19 vaccines this week, one from Pfizer and the other from Astra Zeneca,...

Cuba Ready to Join WHO-Led COVAX Facility, Ambassador to China Says

Q24N   - Cuba is ready to join the COVAX vaccine-sharing mechanism led by the World Health Organization (WHO), the Latin American country's ambassador to...

Health expands group 3 vaccination for people from 16 to 58 years

QCOSTARICA - Adolescents of 16 and 17 years old with some risk factor in case of falling ill with covid-19 will be part of...

Costa Rica will buy two million more doses to accelerate vaccination

QCOSTARICA - The President of the Comision Nacional de Emergencias (CNE), Alexander Solis, announced this Monday afternoon that Costa Rica is purchasing an additional...

Natalia Carvajal tells of her arrest at San Jose airport with false proof of covid-19

Q MAGAZINE - he former Miss Costa Rica and television personality, Natalia Carvajal, broke the silence of her arrest several weeks ago at the...

Keltner Channel Strategy Explained for Beginners

The trading world is full of trading strategies that vary by assets, timeframes, and, of course, technical indicators. In this article, you will learn...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.