Puerto Rican BLD Realty Seeks to Tear Down the Corporate Veil to Uncover Alleged Fraudulent Transfers
May 25, 2022, US Bankruptcy Court for the District of Puerto Rico – BLD Realty, Inc. (“Debtor”) brings claims against Perfect Price, Inc.; Latin Investment Corp; et al. (collectively “Defendants”) to avoid and recover preferential and fraudulent transfers and turnover of property of the bankruptcy estate.
The complaint filed by the Debtor alleges that that the Debtor took out two loans from Banco BBVA Vizcaya Argentina (“BBVA”) by mortgaging two lots of land located at Barrio Espinoza in Vega Alta Puerto Rico. When the Debtor could not repay the loan amounts, BBVA sold the loans to Oriental Bank, and the latter sold them to Triangle REO PR Corp. (“Triangle”) in 2015.
In 2016, the Debtor allegedly leased the mortgaged properties to Perfect Price, Inc. The Debtor claims that Perfect Price, Inc. ceased the payment of rent and continued operating from the facilities on the mortgaged properties.
In 2021, Latin Investment Corp. purchased the loans from Triangle. The Debtor contends that Latin Investment Corp. is a “shell corporation”, directly related to the owners of Perfect Price, Inc. The Debtor maintains that the Defendants are all related and “under the veil of corporate entities”, have “colluded” against the Debtor to take title to the mortgaged properties.
The Debtor avers that it is entitled to a judgment against Perfect Price, Inc. for the overdue rent of around $500,000.00. It also seeks to clawback the transfer of the mortgaged properties made to Latin Investment, Inc.– a consequence of a judicial sale during the period of 90 days prior to the bankruptcy filing while the Debtor was arguably insolvent. The Debtor additionally pleads to recover these properties as “fraudulent transfers” claiming that the properties were acquired in a “fraudulent manner”.
BLD Realty, Inc. v. Perfect Price, Inc. et al. (In re BLD Realty, Inc.), AP No. 22-34, US Bankruptcy Court for the District of Puerto Rico.