Car dealer declared bankrupt

December 07, 2009 6:10 AM

The outstanding debt of Tauro Auto Center N.V. (the “Company”), recently declared bankrupt by the Court, amounted to 8 million guilders at a certain point in time.

This appears from the judgment given by judge Geelhoed. The Company was declared bankrupt by the court on 27 November 2009. According to the judgment, the Company has not been operating anymore since October 2008. Banco di Caribe had attached all stocks of the company in July 2007 and then executed its rights, notably pledge, mortgage, and transfer of fiduciary ownership, for the outstanding debt of 8 million.

After the execution, a remaining debt was left. Upon the closing of the company, there were still outstanding debts to the Tax Authorities, telecom company UTS, utilities company Aqualectra, and local suppliers.

After the attachment, Banco di Caribe actually conducted the management until April 2008, and within this framework, the debts to UTS and Aqualectra were paid, according to the judgment of the Court of First Instance.

Early last month, three former employees filed a petition with the Court to the effect that the Company be declared bankrupt. Briefly thereafter, a hearing took place at court during which the sole managing director of the Company, Mr. Willem “Willy” Cratz – assisted by his lawyer Sergio Saleh – appeared. At such hearing also a creditor appeared.

It appeared from the documents presented to the court by the petitioners for the bankruptcy of the Company, that they were of limited means so that they were given permission to litigate free of charge. These former employees of the Company claimed they claim an amount of ANG 89.300,00 from the Company in connection with their employment contracts.

Mr. Cratz brought forward during the court hearing that the Company does not dispose of any financial means anymore in order to keep the petitioners employed any longer. The Company did acknowledge, however, that they are entitled to the claimed wages.

Based on the aforementioned, the court came to the opinion that the Company is in the position of having ceased to pay, after prima facie evidence was provided, and that the Company leaves several creditors unpaid. Subsequently, the judge declared the Company bankrupt.

(Source: local newspaper Antilliaans Dagblad)

3 December, 2009

The company was represented by lawyer Sergio Saleh.
Lawyer Dave Liqui-Lung of law firm VanEps Kunneman VanDoorne, who specializes in  bankruptcy, corporate, litigation and real estate matters, was appointed trustee. 
Judge Geelhoed was appointed bankruptcy judge in this bankruptcy.