FDIC Shutdown Triggers R&G Financial Ch. 11 Petition

Law360, New York (May 18, 2010, 6:37 PM EDT) -- R&G Financial Corp., a San Juan, Puerto Rico-based bank holding company, is seeking Chapter 11 protection with a mountain of debt exceeding $420 million and assets of $40 million, after federal regulators shuttered its retail banking arm in early May.

The petition was lodged Friday in the U.S. Bankruptcy Court for the District of Puerto Rico, where a court's clerk lodged a warning to the debtor dated Monday that it so far had failed to file creditor contact information.

Holding company chairman Juan Agosto Alicea told...
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