EDGAR ABNER REYES COLON

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF PUERTO RICO
In re: :
:
EDGAR ABNER REYES COLON, : Case No. 06-04675 (GAC)
:
Alleged Debtor : Chapter 11 (Involuntary)
___________________________________:
:
DECISION AND ORDER
Banco Popular de Puerto Rico (“Banco Popular”) filed this
involuntary petition under Chapter 11 on November 22, 2006. On
December 15, 2006, the alleged debtor filed a motion to dismiss the
involuntary petition (dkt. #6) and the Court ordered the alleged
debtor to comply with Fed. R. Bankr. P. 1003(b), by filing a list
of all creditors with their addresses, a brief statement of the
nature of their claims, and the amounts owed (dkt. #7). The
involuntary petition was joined by Popular Auto (dkt. #9). The
alleged debtor filed the list of creditors, in compliance with the
Court’s order, on December 28, 2006 (dkt. #10) and reiterated its
motion to dismiss (dkt. #11).
The Court entered an order on December 28, 2006, indicating
that it appears that there are twelve or more creditors and
affording the creditors fifteen days to join in the petition (dkt.
#12). On January 10, 2007, Banco Popular sought an extension of
fifteen days to serve notice of the filing on the creditors (dkt.
#15). The Court ordered the alleged debtor to reply within ten
days (dkt. #16). The alleged debtor filed two responses (dkt. #18
and dkt. #19).
Case:06-04675-ESL11 Doc#:26 Filed:03/27/07 Entered:03/27/07 16:26:42 Desc: Main
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Banco Popular filed two motions to compel compliance with
order, arguing that the alleged debtor did not affirm under oath
that he is not a guarantor of the debts of any third person (dkt.
#20 and dkt. #23) and the alleged debtor filed an answer contending
that he complied when he filed the original list (dkt. #24).
Counsel for Banco Popular now seeks to resign legal representation
(dkt. #25).
The Court concludes that the alleged debtor has more than
twelve creditors and that he filed the list of creditors on
December 28, 2006. The Court concludes that creditors were given
a reasonable opportunity to join the petition in compliance with
Fed. R. Bankr. P. 1003(b) and that Banco Popular has failed to join
two other creditors in order to maintain this petition, as required
by 11 U.S.C. § 303(b)(1). Thus, the Court concludes that the
involuntary petition must be dismissed. While the Court does not
have evidence before it, from which it can conclude that the
petition was filed in bad faith, pursuant to 11 U.S.C. § 303(i)(B),
the Court will award the alleged debtor reasonable attorney’s fees.
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ORDER
WHEREFORE IT IS ORDERED that this involuntary petition shall
be, and it hereby is, DISMISSED.
IT IS FURTHER ORDERED that the motion resigning legal
representation filed by Attorney Sergio A. Ramirez de Arellano on
behalf of Banco Popular is DENIED.
IT IS FURTHER ORDERED that counsel for the alleged debtor is
granted twenty (20) days to submit an application for the
attorney’s fees incurred in contesting this petition. If Banco
Popular fails to oppose the application within ten (10) days,
judgment will be entered in favor of the alleged debtor and against
Banco Popular, granting the attorney’s fees requested.
SO ORDERED.
San Juan, Puerto Rico, this 27th day of March, 2007.
S/Gerardo A. Carlo
______________________
Gerardo A. Carlo
U.S. Bankruptcy Judge
Case:06-04675-ESL11 Doc#:26 Filed:03/27/07 Entered:03/27/07 16:26:42 Desc: Main
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