The Puerto Rico Court of Appeals recently upheld a ruling that allows PR Recovery and Development JV, LLC (PRRD) to collect debts from Zymbia Company, Corp. and its guarantor, Symbia Waleska Díaz Chico. This decision, made on June 22, 2026, confirms the lower court's judgment that Zymbia owes PRRD over $297,000, including principal, interest, and legal fees.

This ruling is significant as it impacts the financial obligations of Zymbia and its guarantor, potentially leading to the sale of their property to satisfy the debt. The case highlights the importance of adhering to loan agreements and the consequences of defaulting on financial obligations.

Background

The dispute began when PRRD filed a lawsuit against Zymbia and Díaz Chico on December 1, 2023. PRRD claimed to be the successor in interest to certain assets of the Development Bank of Puerto Rico (DBE), including credit facilities extended to Zymbia. According to PRRD, Zymbia defaulted on its loan obligations, which included a total debt of $297,638.43 as of September 26, 2024.

Zymbia, along with Díaz Chico, had entered into a loan agreement with the DBE in 2007, which included a promissory note and a mortgage to secure the loan. PRRD argued that it was the rightful holder of the promissory notes and the mortgage, having been assigned these documents by the DBE. Zymbia contested the claims, alleging that the amounts owed were not valid and that there were unresolved issues regarding the debt.

The Ruling

The Court of Appeals, led by Judge Lebrón Nieves, affirmed the lower court's ruling that granted PRRD's motion for summary judgment. The court stated, "The obligations of payment of the defendant are overdue, liquid, and immediately enforceable." This ruling means that the court found no substantial dispute regarding the facts of the case, allowing PRRD to proceed with the collection of the debt.

The court also rejected Zymbia's request to halt the proceedings, confirming that the lower court had correctly determined that PRRD was entitled to collect the debt. The ruling allows PRRD to initiate foreclosure proceedings on the property secured by the mortgage if the debt remains unpaid.

Impact

This ruling has significant implications for Zymbia and Díaz Chico, as it confirms their financial obligations and the potential loss of their property. The court's decision reinforces the enforceability of loan agreements and the rights of creditors to collect debts through legal means. It also serves as a reminder to businesses about the importance of maintaining financial responsibilities and the consequences of defaulting on loans.

Furthermore, this case may set a precedent for similar cases in Puerto Rico, emphasizing the courts' willingness to uphold creditor rights in debt collection matters. It highlights the legal framework surrounding loan agreements and the responsibilities of borrowers to fulfill their obligations.

What's Next

Following this ruling, Zymbia and Díaz Chico may consider appealing the decision to a higher court, although details regarding any potential appeal were not available in the court filing. The case serves as a critical example of the legal processes involved in debt collection and the importance of complying with loan agreements.