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Portfolio Capital Creditors Meeting Suspended Over Lack of Representation
🇺🇾 Uruguay /Economy & Trade

Portfolio Capital Creditors Meeting Suspended Over Lack of Representation

From El País · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • Portfolio Capital's creditors' meeting was suspended due to the absence of legal representation for Oro Rojo S.A.
  • A public defender will be appointed to represent Oro Rojo S.A., after which a new meeting date will be set.
  • The meeting was to decide between accepting a proposed agreement or proceeding with liquidation.

A creditors' meeting for Portfolio Capital was suspended Thursday afternoon after it was discovered that Oro Rojo S.A., one of the companies in receivership, lacked legal representation. Judicial sources told El País that proceeding without representation could have led to the annulment of any decisions made during the meeting.

not be reaching the adhesions

— Nicolás GhizzoNicolás Ghizzo, one of the lawyers representing the creditors, commented on the potential lack of support for the proposed agreement.

An official defender will now be appointed to represent Oro Rojo S.A. This individual has three days to accept the role. Once accepted, a new date for the creditors' meeting will be scheduled. The primary agenda item was to vote on a proposed agreement that would have seen the company return at least 58% of the owed money in 19 semi-annual installments of US$150,000, or to proceed with the company's liquidation.

almost a return to trust

— Nicolás GhizzoGhizzo described the proposed settlement terms, which required waiving criminal proceedings and accepting a partial repayment.

Some affected parties expressed skepticism about the proposed agreement. Lawyer Nicolás Ghizzo indicated that the necessary adhesions for the agreement might not be reached. He described the proposal as "almost a return to trust," noting that accepting it would require clients to waive all criminal proceedings and, in the best-case scenario, forfeit 42% of their capital, excluding interest. Other legal representatives consulted by El País shared Ghizzo's reservations, preferring to remain anonymous.

would have to renounce all criminal proceedings and, in the best of cases, also forget about 42% of what they are owed. We are talking only about capital, not interest.

— Nicolás GhizzoGhizzo explained the implications for creditors if they accepted the proposed agreement.
DistantNews Editorial

Originally published by El País in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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