Court authorizes US$5 million asset freeze in Azua power project contract case

Azua.- A Dominican court has authorized precautionary measures of up to US$5 million against Dynex Energy Group, Dynex Energy RD, and Carlos Matamoros Bregni, the local representative of the Karpowership Dominican Republic project, in connection with an ongoing contract dispute over the Azua power generation project.

The ruling, issued by the Second Chamber of the Criminal Court of First Instance of the National District, authorizes asset seizures and a provisional judicial mortgage while the case proceeds. However, the court rejected a request to impose a travel ban on Matamoros Bregni, finding insufficient evidence that he posed a flight risk.

The lawsuit was filed by Transcaribbean Energy Partners & Consulting (TEPC), which alleges that a 2018 exclusivity agreement entitled it to 55% of the project’s profits. TEPC claims it never received its agreed share despite the project’s commercial operation and alleges that Dynex Energy received millions of dollars in payments related to the venture.

Judge Clara Luz Almonte Gómez ruled that there was sufficient preliminary evidence to justify the precautionary measures and to prevent possible insolvency while the litigation continues.

The case remains unresolved, and the court’s measures are precautionary only, not a final judgment on the merits of the dispute. At the time of publication, Dynex Energy, Dynex Energy RD, Carlos Matamoros Bregni, and Karpowership’s parent company, Karadeniz Holding, had not publicly responded to the allegations.