Insolvency and restructuring
Reorganizations, creditor agreements, liquidations and debt recovery.
Law 1116 of 2006 governs business insolvency in Colombia. It offers a distressed company a reorganization proceeding to renegotiate its debts under court protection and, when recovery is not viable, an orderly liquidation proceeding. The Superintendence of Companies (Superintendencia de Sociedades) hears the proceedings of companies, and the civil circuit courts hear those of other debtors.
We advise debtors on whether to file, on preparing the petition and the business plan, and on negotiating the agreement with creditors. We also advise creditors, suppliers and financial institutions on filing and defending their claims, on objections to the ranking of claims, on enforcing security and on recovering receivables outside the proceeding.
We also advise directors and officers who must answer for their decisions in the period leading up to the crisis.
What we do
- Assessment of the insolvency situation and its alternatives: private workout, reorganization or liquidation.
- Preparation and filing of the reorganization petition before the Superintendence of Companies or the competent court.
- Negotiation and drafting of the reorganization agreement and its payment terms.
- Representation of creditors: filing of claims, objections and voting on the agreement.
- Defense of security interests over movable assets and mortgages within the proceeding.
- Private debt restructuring agreements with banks and suppliers.
- Judicial liquidation and voluntary liquidation of companies.
- Enforcement proceedings and recovery of commercial receivables.
- Advice to directors and officers on their duties and liability when the company is in distress.
- Purchase of assets and of companies in reorganization or liquidation.
Questions we answer
- When must I file for reorganization, and what happens if I file late?
- My customer entered reorganization and owes me invoices. Can I stop supplying it or attach its assets?
- Which debts are frozen once the proceeding is admitted, and which must I keep paying?
- Can I keep managing the company during the reorganization?
- Am I personally liable for the company's debts if it is liquidated?
- A debtor offers to pay part of what it owes if we accept an agreement outside the proceeding. Is that valid?
Let's talk
Tell us the decision you have to make. We reply the same business day.
Write to us