business

Judge approves Adelag agreement

The agreement addresses the company’s civil court matters and calls for fraud charges to be dropped.

Civil Court Judge Jorge Isaac Escobar has approved an agreement between the former directors of Grupo Adelag and the firm's creditors.

The agreement represents the final stage of legal proceedings in the case which arose after Adelag declared bankruptcy in 2001. That move cost investors an estimated $43.7 million.

The agreement was signed by Aquilino and Carlos de la Guardia, the brothers who served as the firm's directors. The companies that made up Grupo Adelag were El Triángulo, El Eléctrico Internacional, Unicentro Trading Company Inc., Tecno Auto, Tecno Taller, Enafin Int., Financiera El Roble and Comercio Total.

The brothers now have 120 days to complete the payments that are outlined in the agreement.

Under the terms of the agreement, Aquilino and Carlos de la Guardia can once again engage in commercial activities, which was one of the restrictions imposed on them after Adelag declared bankruptcy.

It also calls for the fraud charges related to the company’s bankruptcy claims to be dismissed. The brothers had faced a variety of criminal charges related to the firm’s bankruptcy.

According to the terms of the agreement, banks that extended loans to Adelag will receive 55 cents for every dollar they lost, while other investors will receive nine cents for every dollar.

Sources close to the case said that the payments will be made this week.

The Adelag case was one of the largest bankruptcy cases in Panama’s history.