Puerto Rico: One of the plans for El Comandante disqualified

The decision of the court puts Camarero Group as the only one with a viable plan, and the company is nearer the control of the horse racetrack. The plan, that includes the sale of the assets of El Comandante to Camarero, was presented by the representatives of the shareholders and the main creditors in this process.

In the statement, Lamoutte evaluates the plan presented by Caribbean and the objections

Presented by the shareholders, Grupo Camarero, the Financial Department and the Administration of the horse-races. One of the main defects he points in Caribbean plan is the segregation of one type of shareholders with the aim to facilitate the confirmation of this proposal for reorganization.

After analyzing the jurisprudence, the jugde concluded that this segregation is not acceptable and rejected it, accepting the objection presented by the creditors and Camarero. Caribbean offer was of us$ 83 million, of which it would obtain us$ 75 million in a loan and its shareholders committed to bring other us$ 14,5 million.

Lamoutte still has to confirm the creditors' plan, which includes the sale of Camarero assets. In a decision released last December 12th, the jugde determined that this plan is viable, but did not issue the confirmation order awaiting for the evaluation of Caribbean plan.

This bankrupcy case of El Comandante horse race-track started on October 2004 with a reorganization petition under Chapter 11 of the Bankrupcy Law. Current owners of the racetrack, the Wilson family, have recently withdrawn from the competition in order to retain assets.