IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF PUERTO RICO

IN RE: :

:

EMPRESAS OMAJEDE, INC., : Case No. 12-10113 (ESL)

:

Debtor : Chapter 11

_________________________________________ :

SECOND URGENT MOTION REQUESTING ORDER REQUIRING THE PUERTO 

RICO DEPARTMENT OF TREASURY, THE PUERTO RICO DEPARTMENT OF 

CORRECTIONS AND THE PUBLIC SERVICE COMMISSION OF PUERTO RICO

TO SHOW CAUSE AS TO WHY THEY HAVE FAILED TO MAKE THE

RENT AND UTILITY PAYMENTS OWED TO DEBTOR

TO THE HONORABLE COURT:

COMES NOW Empresas Omajede, Inc. (the “Debtor”), represented by the

undersigned attorney, respectfully requesting that the Court enter an order requiring the Puerto 

Rico Department of Treasury (“Treasury”), the Puerto Rico Department of Corrections 

(“Corrections”) and the Public Service Commission of Puerto Rico (“PSC”) to show cause as to 

why they have failed to make the rent and utility payments owed to Debtor.

In support of this motion, the Debtor respectfully states as follows:

1. On December 21, 2012, the Debtor filed a voluntary petition for relief under Chapter 

11 of the Bankruptcy Code. No trustee, nor committee of unsecured creditors, has been 

appointed. The Debtor continues in possession of its property and is operating and managing its 

business as a debtor-in-possession pursuant to 11 U.S.C. §§ 1107 and 1108.

2. The Debtor’s Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code 

(Docket No. 331) was confirmed by order entered on March 16, 2016 (Docket No. 366). The 

Debtor has commenced payments under the confirmed plan, but has elected to leave the case 

open. The Debtor is filing quarterly operating reports, as well as paying the U.S. Trustee’s fees, 

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also on a quarterly basis.

3. Upon the Debtor’s request and with the consent of the Puerto Rico Department of 

Justice, the Court retained jurisdiction over the issues related to the payment of rent and utility 

payments by the aforementioned government agencies.

4. As detailed in the original motion for an order to show cause, both Corrections and 

PSC are tenants in the Debtor’s office/warehouse complex, located at 1608 Bori St., San Juan, 

Puerto Rico and known as La Electronica Building.

5. Since 2004, Corrections has utilized its rented space to warehouse inventory, including 

such things as mattresses, uniforms and all other supplies to operate a prison system. But, more 

importantly Corrections stores all former prisoner records and all other inactive administrative 

files at the Debtor’s facilities.

6. Corrections pays a monthly rent of $28,000, while the PCS paid $46,000 monthly, 

until August 31, 2016, at which time, pursuant to the terms of the contract entered into with the 

Debtor, the monthly rent increased to $66,666.66. Together these two tenants generate more 

than 50% of the Debtor’s operating income.

7. Both agencies are separately billed for electricity expenses based upon actual 

consumption.

8. At present, Corrections has an outstanding balance of $68,188.75. See Exhibit A, 

which is a customer ledger showing debits and credits for both rent and electricity from January 

1, 2016 to October 21, 2016.

9. PSC is significantly further behind in payments, with an outstanding balance of 

$179,383.52. See Exhibit B, with is a customer ledger showing debits and credits for both rent 

and electricity from January 1, 2016 to October 21, 2016.

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10. And in spite of the late and/or nonpayment of rent or electricity, both Corrections and 

the PSC continue to use the Debtor’s facilities and the Debtor continues to provide electricity, 

water, security, maintenance, insurance and other services, all at the expense of the estate.

11. The Debtor’s warehouse and office facilities are property of the Debtor’s bankruptcy 

estate pursuant to 11 U.S.C. § 541, as are the accounts receivable, and the rental payments 

received are proceeds of the property of the estate.

12. The use of the Debtors facilities by Corrections and PSC without compensation 

constitutes a taking of property without compensation.

13. And while the Debtor recognizes the serious financial difficulties facing the 

Commonwealth of Puerto Rico, the use of the Debtor’s facilities without compensation unjustly 

enriches the government of Puerto Rico. It is allowing the government to borrow, assuming it 

pays, from those without the ability to negotiate and without compensation for the lending.

14. The Debtor will be unable to satisfy its secured debt payments as of November, incur 

additional expenses, and thereafter become unable to meet other obligations under its confirmed 

plan, including the payment of its utilities and tax obligations, without the receipt of the rent 

generated from the properties occupied by Corrections and PSC.

15. Moreover, the Debtor does not have the financial capacity to extend credit to the 

Commonwealth, Corrections and PSC for utilities, security, maintenance, property taxes, etc.; all 

services for which they are not paying.

16. Presently, the nonpayment of rent by Treasury on behalf of Corrections and PSC

jeopardizes the Debtor’s First Amended Plan of Reorganization, as well as having a negative 

effect on all other tenants in the Debtor’s office space.

17. If the rent payments are not brought current and the obligations to pay met on a 

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monthly basis, the Debtor will have no choice but to close operations and liquidate, leaving the 

Debtor’s principal destitute and the other established tenants looking for other office space in 

very short order.

18. Prior to the filing of this motion, the Debtor made numerous efforts to collect the 

outstanding rent and electricity payments from both Corrections and the PSC, to no avail. The 

most recent letter sent to PSC was dated October 14, 2016, wherein the Debtor advised that the 

law allows the Debtor to discontinue the electric service to the agency for having more than three 

months of rent outstanding. See Exhibit C. The Debtor intends to send the PSC a follow-up 

letter demanding payment of all arrears or the Debtor will cut the electricity, effectively closing 

the agency.

WHEREFORE, the Debtor respectfully requests that the Court enter an order granting 

the relief requested herein and ordering the Puerto Rico Department of Treasury, the Puerto Rico 

Department of Corrections and the Public Service Commission to show cause as to why they 

have not paid the outstanding rent and electricity payments owed to Debtor, in the amount of 

$68,188.75 on behalf of Corrections and $179,383.52 on behalf of the PSC, and why they should 

not be ordered to make payments on a monthly basis.

CERTIFICATE OF SERVICE: It is hereby certified that on this same date, the 

foregoing was electronically filed with the Clerk of the Court using the CM/ECF system which 

will send notification of such filing to the Office of the United States Trustee and to all CM/ 

ECF participants in this case, including Attorney Migda L. Rodriguez Collazo, who has 

appeared on behalf of the Puerto Rico Department of Justice, the Puerto Rico Department of 

Treasury, the Puerto Rico Department of Corrections and the Public Service Commission in this 

case.

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It is further certified that notice of this motion was sent: by fax to the Puerto Rico 

Department of Treasury at (787) 722-6276 and (787) 722-6367 and by First Class Mail to 

Department of Treasury - Bankruptcy Section, 235 Ave. Arterial Hostos, Suite 1504, San Juan, 

PR 00918-1451; to the Puerto Rico Department of Justice by fax at (787) 723-9188; to the 

Puerto Rico Department of Corrections by E-mail to Maria del Carmen Rodriguez, Correction’s 

Budget Office Director at mcmartinez@dcr.pr.gov, by E-mail to Mrs. Gilnia Rodríguez Ramos, 

General Services Director of the Department of Corrections at gilrodriguez@dcr.pr.gov and to

Einar Ramos López, Secretary of the Department of Corrections by E-mail to 

mbergollo@dcr.pr.gov and by First Class U.S. Mail to P.O. Box 71308, San Juan, PR 00936; to 

the PSC to Omar Negrón Judice, President of Public Service Commission of Puerto Rico by Email to onegron@csp.pr.gov and to Rolando Meléndez Martínez, Administrator of the Public 

Service Commission of Puerto Rico by E-mail to rmelendez@csp.pr.gov and by First Class U.S. 

Mail to P.O. Box 190870, San Juan, PR 00918.

CERTIFICATION

The Debtor has: a) carefully examined the matter and concludes that there is a true need 

for an urgent hearing; b) has not created the urgency through any lack of due diligence; and c) 

has made a bona fide effort to resolve the matter without a hearing.

Empresas Omajede, Inc

/s/ Antonio Betancourt Capó

Antonio Betancourt Capó

President

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VERIFICATION

I, Antonio Betancourt Capó, President of the Debtor corporation, declare under penalty of 

perjury, as provided by 28 U.S.C. § 1746, that the allegations contained in this Urgent Motion 

are true and correct to the best of my knowledge and belief.

Executed in San Juan, Puerto Rico, this 24th day of October, 2016.

Empresas Omajede, Inc.

/s/ Antonio Betancourt Capó

Antonio Betancourt Capó

President

Respectfully submitted,

In San Juan, Puerto Rico this 24th day of October, 2016.

G.A. Carlo-Altieri & Associates

254 San Jose St., Third Floor,

San Juan, Puerto Rico 00901

Phone: (787) 247-6680

Fax: (787) 919-0527

/s/ Kendra Loomis

Kendra Loomis

USDC PR No. 227408

E-mail: loomislegal@gmail.com

Mobile: (787) 370-0255

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EMPRESAS OMAJEDE, INC.

Customer Ledgers

For the Period From Jan 1, 2016 to Oct 21, 2016

Filter Criteria includes: 1) IDs from Correccion-STG to Correccion-STG. Report order is by ID. Report is printed in Detail Format.

Customer ID

Customer

Date Trans No Type Debit Amt Credit Amt Balance

Correccion-STG

Departamento de Finanzas

1/1/16 Balance Fwd 139,032.23

1/1/16 CORR STG-JAN16 SJ 28,000.00 167,032.23

1/26/16 CORR AEE-JAN16 SJ 3,413.16 170,445.39

2/1/16 CORR STG-FEB/16 SJ 28,000.00 198,445.39

2/3/16 16-013 CRJ 11,891.26 186,554.13

2/18/16 CM AEE-JAN16/CORR SJ 3,413.16 183,140.97

3/1/16 CORR STG-MAR16 SJ 28,000.00 211,140.97

3/11/16 16-028 CRJ 151,294.04 59,846.93

3/21/16 16-033 CRJ 3,846.93 56,000.00

3/28/16 CORR AEE-MAR16 SJ 1,461.15 57,461.15

4/1/16 CORR STG-APR16 SJ 28,000.00 85,461.15

4/4/16 16-038 CRJ 28,000.00 57,461.15

4/25/16 CORR AEE-APR16 SJ 4,132.44 61,593.59

5/1/16 CORR STG-MAY16 SJ 28,000.00 89,593.59

5/11/16 16-052 CRJ 28,000.00 61,593.59

5/20/16 16-056 CRJ 28,000.00 33,593.59

5/25/16 CORR STG AEE-MAY16 SJ 4,258.62 37,852.21

6/1/16 CORR STG-JUN16 SJ 28,000.00 65,852.21

6/2/16 16-059 CRJ 1,461.15 64,391.06

6/24/16 CORR AEE-JUN16 SJ 4,527.70 68,918.76

7/1/16 CORR STG-JUL16 SJ 28,000.00 96,918.76

7/11/16 16-073 CRJ 4,132.44 92,786.32

7/14/16 16-077 CRJ 28,000.00 64,786.32

7/26/16 CORR AEE-JUL16 SJ 5,334.44 70,120.76

8/1/16 CORR STG-AUG16 SJ 28,000.00 98,120.76

8/4/16 16-086 CRJ 32,258.62 65,862.14

8/18/16 16-091 CRJ 4,527.70 61,334.44

8/23/16 CORR AEE-AGO16 SJ 5,468.96 66,803.40

9/1/16 CORR STG-SEP16 SJ 28,000.00 94,803.40

9/27/16 CORR/STG AEE-SEP16 SJ 6,719.79 101,523.19

9/28/16 16-107 CRJ 28,000.00 73,523.19

10/1/16 CORR STG-OCT16 SJ 28,000.00 101,523.19

10/5/16 16-111 CRJ 5,334.44 96,188.75

10/7/16 16-113 CRJ 28,000.00 68,188.75

Report Total 315,316.26 386,159.74 68,188.75

EXHIBIT A Case:12-10113-ESL11 Doc#:382-1 Filed:10/24/16 Entered:10/24/16 11:26:06 Desc:

Exhibit A - Corrections Customer Ledger Page 1 of 1

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EMPRESAS OMAJEDE, INC.

Customer Ledgers

For the Period From Jan 1, 2016 to Oct 21, 2016

Filter Criteria includes: 1) IDs from Comision-CSP to Comision-CSP. Report order is by ID. Report is printed in Detail Format.

Customer ID

Customer

Date Trans No Type Debit Amt Credit Amt Balance

Comision-CSP

Comisión de Servicio Público

1/1/16 Balance Fwd 36,769.68

1/1/16 CSP JAN2016 SJ 46,000.00 82,769.68

1/26/16 CSP AEE-JAN16 SJ 4,591.44 87,361.12

1/27/16 16-008 CRJ 30,209.51 57,151.61

2/1/16 CSP FEB16 SJ 46,000.00 103,151.61

2/11/16 16-017 CRJ 52,509.97 50,641.64

2/24/16 16-022 CRJ 50,591.44 50.20

2/29/16 CSP AEE-FEB16 SJ 5,818.20 5,868.40

3/1/16 CSP MAR16 SJ 46,000.00 51,868.40

3/28/16 CSP AEE-MAR16 SJ 6,241.72 58,110.12

3/30/16 16-035 CRJ 51,818.20 6,291.92

4/1/16 CSP APR16 SJ 46,000.00 52,291.92

4/25/16 CSP AEE-APR16 SJ 7,162.56 59,454.48

5/1/16 CSP MAY16 SJ 46,000.00 105,454.48

5/5/16 16-051 CRJ 52,241.72 53,212.76

5/20/16 16-056 CRJ 53,162.56 50.20

5/25/16 CSP AEE-MAY16 SJ 6,818.58 6,868.78

6/1/16 CSP JUN16 SJ 46,000.00 52,868.78

6/20/16 16-065 CRJ 46,000.00 6,868.78

6/24/16 CSP AEE-JUN16 SJ 6,591.10 13,459.88

6/29/16 16-069 CRJ 6,818.58 6,641.30

7/1/16 CSP JULY16 SJ 46,000.00 52,641.30

7/21/16 16-080 CRJ 6,591.10 46,050.20

7/26/16 CSP AEE-JUL16 SJ 6,436.06 52,486.26

8/1/16 CSP AUG16 SJ 46,000.00 98,486.26

8/4/16 16-086 CRJ 46,000.00 52,486.26

8/23/16 CSP AEE-AGO16 SJ 6,894.34 59,380.60

9/1/16 CSP SEP16 SJ 46,000.00 105,380.60

9/1/16 16-098 CRJ 13,330.40 92,050.20

9/1/16 CSP SEP16-ADJ SJ 20,666.66 112,716.86

9/27/16 CSP AEE-SEP16 SJ 8,370.81 121,087.67

10/1/16 CSP OCT16 SJ 46,000.00 167,087.67

10/1/16 CSP OCT16-ADJ SJ 20,666.66 187,754.33

10/12/16 16-117 CRJ 8,370.81 179,383.52

Report Total 560,258.13 417,644.29 179,383.52

EXHIBIT B Case:12-10113-ESL11 Doc#:382-2 Filed:10/24/16 Entered:10/24/16 11:26:06 Desc:

Exhibit B - PSC Customer Ledger Page 1 of 1

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EXHIBIT C

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Exhibit C - Letter of Oct. 14 to PSC Page 1 of 3

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Exhibit 12 - Dkt. 382 of 12-10113 Page 9 of 11
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Exhibit C - Letter of Oct. 14 to PSC Page 2 of 3

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