BDO’s financial position deplorable

 

WILLEMSTAD.- With its judgment delivered yesterday November 13th 2019, the Court of First Instance of Curaçao reconfirmed the bankruptcy of Banco del Orinoco (BDO). The resistance to this was rejected by the General Court.

At the request of the Central Bank of Curaçao and Sint Maarten (CBCS), the emergency regulation was pronounced against BDO by court judgment of 5 September 2019. The Court of First Instance thereby assumed that BDO used forged documents to substantiate its financial position and therefore considered CBCS’s serious doubts about the financial position to be justified. During the emergency regulation, CBCS found that BDO’s financial position was deplorable. CBCS has determined that the continuation of the emergency regulation no longer serves a purpose. At the request of CBCS, the bankruptcy of BDO was subsequently pronounced.

In today’s judgment, the Court of First Instance has again and again assessed whether BDO has a negative equity and that the objective to be achieved by the emergency regulation cannot be achieved (any longer). BDO’s debts amount to approximately USD 900 million. In the context of the resistance it has not been demonstrated that BDO has substantial assets. According to the Court, CBCS was right to take the view that BDO had a negative equity. The Court considers that CBCS was able to judge that the purpose of the emergency regulation could not be achieved. The bankruptcy of BDO therefore remains fully intact.

LAGA UN KOMENTARIO

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