A legal dispute centered on the Azua power generation project in the Dominican Republic has taken a key step forward, after a local court approved nearly $5 million in precautionary restrictive measures targeting Dynex Energy Group, its Dominican subsidiary Dynex Energy RD, and Carlos Matamoros Bregni, the local representative of the Karpowership Dominican Republic project.
The ruling came from the Second Chamber of the Criminal Court of First Instance of the National District. The approved measures include the authorization of asset seizures and a provisional judicial mortgage, which will remain in effect throughout the duration of the ongoing litigation. In a balanced decision, however, the court declined to grant a requested travel ban against Matamoros Bregni. Judges concluded there was not enough credible evidence to support the claim that he posed a flight risk that would require restricting his movement.
The conflict stems from a lawsuit filed by Transcaribbean Energy Partners & Consulting (TEPC), the plaintiff in the case. TEPC’s legal argument centers on a 2018 exclusivity agreement that the firm says guarantees it 55% of all profits generated by the Azua power project. According to TEPC’s allegations, even after the project entered full commercial operation, the company has never received the share of profits it was promised. The plaintiff further claims that Dynex Energy has collected millions of dollars in payments linked to the joint venture that have not been distributed as agreed.
Presiding Judge Clara Luz Almonte Gómez justified the approval of precautionary measures by noting that the prosecution presented sufficient preliminary evidence to support the measures. The court also found that the restrictions are necessary to prevent the potential for insolvency that could leave any eventual ruling in TEPC’s favor unenforceable.
It is important to note that the court’s current action is only a precautionary step, not a final ruling on the underlying merits of the contract dispute. The case remains open and unresolved as legal proceedings move forward. As of the time of this report, none of the named respondents—Dynex Energy Group, Dynex Energy RD, Carlos Matamoros Bregni, nor Karpowership’s parent firm Karadeniz Holding—have issued any public statement responding to TEPC’s allegations.