IN RE CORPORATIÓN HOTELERA DE PUERTO RICO, B-27-70.
| Decision Date | 20 January 1971 |
| Docket Number | No. B-27-70.,B-27-70. |
| Parties | In the Matter of CORPORATIÓN HOTELERA DE PUERTO RICO (San Jeronimo Hilton), Debtor. |
| Court | U.S. District Court — District of Puerto Rico |
Fiddler, González & Rodríguez, San Juan, P. R., for The Chase Manhattan Bank, N. A.
Correa Calzada, Collazo Salazar, Herrero & Lazaro Paoli, San Juan, P. R., for petitioning creditors.
Otero Suro & Otero Suro, San Juan, P. R., for debtor.
Secretary of Justice, San Juan, Puerto Rico, for Secretary of Finance, Commonwealth of Puerto Rico.
Géigel & Silva, San Juan, P. R., for Puerto Rico Industrial Development Co.
O'Neill & Borges, San Juan, P. R., for Amron Credit Corp.
Baker & Woods, San Juan, P. R., for First National Bank of Jefferson Parish.
Segurola & Montalvo, San Juan, P. R., for Manuel San Juan Co., Inc.
Rodríguez-Ema, Rodríguez-Ramón, Beñitez Gautier & Sequeria, San Juan, P. R., for Correa Suarez, Gonzalez Correa & Santos.
McConnel, Valdés, Kelley & Sifre, San Juan, P. R., for Hilton International Co. and Hilton of San Juan, Inc.
In this corporate reorganization case, the issue posed by the creditors' petition for Chapter X relief and the Mortgagees' motions to dismiss is whether the petition has been filed in good faith.
The undersigned exercises authority in this case pursuant to assignment of the Chief Justice of the United States under 28 U.S.C. § 292(c).
On May 21, 1970, in chambers, the parties stipulated to submit the issue on affidavits, counter-affidavits and briefs. Such have been filed and lodged.
The Court has read the complete file, all briefs lodged, and pertinent judicial decisions. Oral argument was heard on this date.
On April 28, 1970 several unsecured creditors filed a Chapter X petition. The debtor's answer does not controvert any material allegations of the petition. The debtor owns one property, the San Jeronimo Hilton Hotel in San Juan. It is leased to the Hilton Hotels International, Inc. The lease runs to 1984. On this date, January 20, 1971, the Court has been informed that Hotelera and the debtor have entered into a stipulation terminating the lease, which termination becomes effective on May 29, 1971. The property is subject to three mortgages totaling about 9½ million dollars. The Chase Manhattan Bank (Chase) is the sole holder of the first mortgage (now 4½ years in default) and, with another, Amron Credit Corp. (Amron), holds more than 2/3 of the beneficial interest in a second mortgage. The First National Bank of Jefferson Parish (Bank) is the holder of a note representing at least 2/3 of the indebtedness secured by the third mortgage.
Chase, Amron and the Bank have all filed motions to dismiss the Chapter X petition of the unsecured creditors.
The statute requires the Court to grant the Chapter X petition "if satisfied" that it "has been filed in good faith" or to dismiss it "if not so satisfied." 11 U.S.C. § 542. Good faith is defined in 11 U.S.C. § 546.
The Court is not so satisfied. It "is...
To continue reading
Request your trial
-
In re Agregados de Manati, Inc.
...141 of the Act, are not met. The last mentioned argument is based on this Court's decision in the case of In Re Corporación Hotelera De Puerto Rico (D.C.P.R. 1971), 321 F.Supp. 1180, with an unrecorded opinion of February 12, 1971 which supplements the decision already With respect to Kane ......
-
In re De Manati
...motion, based on the authority of the judgment entered by this Court in the case of In the Matter of Corporación Hotelera de Puerto Rico (San Jerónimo Hilton), Debtor, 321 F.Supp. 1180 (D.C.1971), which held that opposition by holders of more than two-thirds in amount of secured claims agai......