CHILE – NEW BANKRUPCY LAW FACILITATES REORGANIZATION, BANK RESCUE AND RESUMING ENTREPRENEURSHIP FOR PEOPLE OR COMPANIES WHO HAVE SUFFERED A FINANCIAL SETBACK

05 / 11 / 2014

As of October 9th, law nº 20.720 enters into effect, replacing the current bankruptcy law, including modern and agile procedures to facilitate reorganization, bank rescue and resuming entrepreneurship for people or companies who have suffered a financial setback.

The innovative figure of the “reorganization supervisor”, is incorporated, who together with the debtor and the creditors, seek to reorganize the company. If this is not possible, a “liquidator” becomes involved, replacing the former receiver.

For legal persons, the corresponding superitendency may facilitate agreement between the debtor and the accreditors.

For questions or further information, please contact Blas Bellolio (b.bellolio@villaseca.cl) or Sergio Amenabar (samenabar@villaseca.cl).