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DPL files $1.4M claim on bankrupt firm
The Department of Public Lands is claiming $1.4 million in royalty and quarry permit from Camacho Equipment Co. Inc., a local company that filed for bankruptcy in November 2011.
DPL, through assistant attorney general Charles E. Brasington, filed in the U.S. District Court for the NMI on Monday a motion to amend its proof of claim to change its status from unsecured to secured creditor.
Secured creditors are those having a secured interest in the property and can use that property as collateral in case of default.
Brasington said that DPL’s previous filing as an “unsecured creditor” was an inadvertent error.
He cited a temporary quarry permit dated May 22, 2007, that states that if Camacho Equipment Co. “files for relief under the U.S. Bankruptcy Code.any rent due and payable.shall constitute a valid first lien upon any of [Camacho’s] buildings, improvements, machinery and equipment on the premises.”
Camacho Equipment Co. has filed for relief under Chapter 7 of the U.S. Bankruptcy Code.
The government lawyer said the company owes DPL $1,428,679.21.
Under a Chapter 7 petition, most assets of the debtors are liquidated as quickly as possible to pay off his or her debts over a period of three to five years.
Timothy H. Bellas, counsel for Camacho Equipment Co., listed over 20 creditors that the company owes a total of $366,325.85. He said the company’s assets total only $103,638.33, and consist of personal property.
By Ferdie de la Torre
Reporter
