Banesco USA sues Mayagüez animal feed operator over $6.6M default
The dispute arises from loans provided to the Federación de Asociaciones Pecuarias de Puerto Rico in 2017.
Banesco USA, a Florida-chartered banking corporation, has filed a demanda against the Federación de Asociaciones Pecuarias de Puerto Rico (FAPPR), seeking to recover outstanding debt and foreclose on mortgages tied to commercial loans exceeding $6.6 million.
The dispute stems from two loans Banesco extended to FAPPR in August 2017: a $7 million term loan and a $1.3 million term loan. Both carried a 6% annual interest rate, with provisions for default interest.
The loans were initially set to mature in August 2022, but three subsequent amendments extended the repayment deadlines, the last of which set maturity for August 2024. Despite these adjustments, FAPPR failed to meet its obligations, according to the claim.
As of late December 2024, the unpaid balances total $5.5 million in principal and $369,079 in interest for the first loan, and $75,080 in principal and $5,487 in interest for the second. Additional fees, late charges and attorney’s fees bring the total claim to more than $6.5 million.
The loans are secured by mortgages on four properties in Mayagüez, including industrial plots and facilities such as a flat storage building, egg packing plant and marine infrastructure. The properties are described as critical assets within the region’s industrial development sector.
Banesco has asked the U.S. District Court for the District of Puerto Rico to approve the foreclosure and sale of the mortgaged properties. The bank has also requested a “lis pendens” notice to secure its claims during litigation. Any proceeds from the sale would be applied to cover the debt, with any remaining balance pursued from FAPPR.
Banesco’s legal team, led by attorney Luis G. Parrilla-Hernández, stated in the filing that multiple efforts to resolve the matter amicably were unsuccessful, leaving foreclosure as the last resort.
