Puerto Rico credit unions seek estimate of their Cofina claims
SAN JUAN – Four credit unions on Wednesday objected to the disclosure statement of the Puerto Rico Sales Tax Financing Corp., known as Cofina, saying it fails to reveal what each class of creditors will get as part of the entity’s debt adjustment plan to restructure $17 billion.
The savings and loans cooperatives that objected were Cooperativa de Ahorro y Crédito de Rincón, which is seeking recovery of more than $75.9 million which is owed by Cofina; Cooperativa de Ahorro y Crédito Dr. Manuel Zeno Gandía, which is seeking over $9.7 million in debt payments; Cooperativa de Ahorro y Crédito Del Valenciano is seeking nearly $2 million; and Cooperativa de Ahorro y Crédito de Juana Díaz is owed nearly $2.4 million.
The credit unions have an adversary proceeding against Cofina, which they say is not mentioned in the disclosure statement.
They say Cofina must provide adequate information in sufficient detail “as far as is reasonably practical in light of the nature and history of the debtor and the condition of the debtor’s books and records…that would enable such a hypothetical creditor of the relevant class to make an informed judgment” about the plan.
“Specifically, nowhere in the Disclosure Statement or the attachments contained therein there is any reference as to what is the amount of amounts due or estimated under each Class defined in the Plan and what estimated dividend, repayment or exchange on new bonds is to be offered for these classes,” they said.
Given the intricacies and details of the case, they said it is unreasonable for creditors to vote on the acceptance or rejection on a plan that has 45,000 claims.
“Aside from the technical safeguards and jargon typical to a complex bankruptcy case, the credit unions and all other hypothetical creditors of the relevant classes defined in the class are entitled to know an approximate estimate on where their claims stand,” they stressed.