PANAMA creditors  of bankrupt R.G. Hotels,  which has debts estimated around  $65 million,  will not be able to register or vote in the  upcoming general creditors meeting.

Coclé Civil Court Judge Manuel Jesus Corrales Hidalgo has extended the period for entities to register as creditors in the bankruptcy case by 10 days, but the decision only applies to foreign entities. Reports La Prensa.

In his decision, which has taken a number of people by surprise, Corrales Hidalgo said that creditors who are not registered may participate in the next general creditors meeting, scheduled for Dec. 29, but will not be able to vote.

The situation has generated a great deal of anxiety among property owners who purchased apartments in the developer's beach projects, but who have yet to receive the titles. There are also hundreds of people who purchased vacation packages in the developer's now-closed hotel.

Some 70 creditors attended the last meeting, on November 26 but only 10 had been registered. Many were angry that the notice of bankruptcy was published shortly before the patriotic holidays in early November, and therefore had gone unnoticed until the case started generating news articles.

Corrales Hidalgo agreed to extend the period for creditors to register, but decreed that it would only apply to foreign residents, as allowed by law. This is because local creditors can only be added by a vote of registered creditors. While it does not eliminate their claims, it does prevent them from voting on bankruptcy matters.

The decision to extend the time period was made because audited reports of the finances of R.G. Hotels were not completed.

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