Santo Domingo.- Securities superintendent Gabriel Castro announced criminal charges filed Wednesday in the Office of the National District Prosecutor against the Corporacion Delta Intur for violating securities market regulatory Law 19-00.
The case is the country’s first major default by a company which issues a bond through the fledgling Santo Domingo Bourse, which in Delta Intur’s case was for RD$850 million.
He said Delta Intur will have to pay a penalty as high as RD$1.0 million. "The penalties for non-compliance have been monetary; there are penalties of up to one million pesos, that's the power that the Law gives us. We have monitored Delta permanently, and have even gone beyond the law, we’ve placed continuous vigilance."
The official was reacting to yesterday’s report on on Delta Intur’s interest-payment default since June, when around 300 investors bought into the RD$700 million bond through the Santo Domingo Bourse. Although the bond has reached maturity, buyers have yet to receive their investment.
The official, quoted by eldia.com.do, said prior to the buyers’ lawyers filing court papers, his agency sought to mediate between Delta Intur and stakeholders.
Castro said during the meetings with both parties, Delta Intur tried to sell several properties and pay back investors, in addition to that, the lawyers requested interest payments to December, which took place, but then filed the complaint anyway.
The Securities superintendent added that he’s met with National District prosecutor Yeni B. Reynoso and with Justice minister Francisco Domínguez, who stated that both parties could still reach an agreement despite the court proceedings.