Judge OKs Capeco Plan To Escape Explosion-Fueled Debt

Law360, New York (May 9, 2011, 2:54 PM EDT) -- A Delaware bankruptcy judge signed off on Caribbean Petroleum Corp.’s Chapter 11 plan Monday, resolving a complex set of environmental and creditor disputes arising from a catastrophic 2009 fuel depot explosion that crippled the company’s operations.

Capeco filed for bankruptcy in August, 10 months after explosions at its Bayamon, Puerto Rico, facility resulted in more than $455 million in tort claims, along with liabilities for environmental damage. The plan is centered on the sale of the debtors’ assets to Puma Caribe LLC for $82 million and...
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