Casiano Communications Inc., parent company of weekly English-language business publication Caribbean Business and a number of other subsidiaries, filed for Chapter 11 bankruptcy protection Monday, citing more than $8.5 million in debt.
In the filing, Casiano also included Direct Responsource Inc., a sister operation that is dragging another $9.1 million in liabilities.
Casiano Communications listed among its largest creditors the Treasury Department, to which it owes more than $2.3 million and Publishers Press Inc., with another $1.9 million. Under Direct Responsource, the company listed the Economic Development Bank as holding the lion’s share of the debt, with more than $7.8 million outstanding.
Businessman Manuel Casiano founded Casiano Communications in 1973, filling several niches with a number of publications, ranging from the weekly newspaper to a variety of magazines focused on health, beauty and other topics. Casiano still heads the operation. Caribbean Business is its flagship publication.
Late in the day, the company released an official statement regarding its move toward bankruptcy, saying “Caribbean Business has been telling its readers how hard it is to run a business in the Puerto Rico economy, which is now in its ninth year of depression.”
The company outlined its plans for a stateside expansion of several of its products, taking advantage of Puerto Rico’s Law 20, which promote the export of services through incentives.
Under Chapter 11 bankruptcy protection, a company has the opportunity to reorganize its finances while continuing its day-to-day operations.
Reactions to Monday’s filing came quickly, with several sources saying the move “was expected” and should pave the way for the company to attract investors, or a buyer for the operation.
For the full bankruptcy petition, click here.