The insolvency systems for companies and other legal entities vary from country to country. The main purpose of insolvency legislation, however, is fundamentally the same worldwide. If there is important value in the business, we need to protect it in order for the company to continue as a viable business and pay creditors. If the liquidation value is higher than the operational value, jurisdictions have liquidation mechanisms that allow companies to efficiently exit the market and pay creditors through an ordered sale of assets.
Each crisis is unique. Therefore, in order to choose the best insolvency alternative, a situation diagnosis is needed before commencing any insolvency proceedings.
This guide has been prepared in order to provide an introduction and brief explanation of certain insolvency issues that have become relevant in the current context in the following jurisdictions: Chile, Colombia, Mexico and Peru.
If you need more information or have any questions, please contact our CMS Latin America restructuring and insolvency experts. Additionally, you can read our global CMS Expert Guide to Stabilisation and Restructuring, including further information on restructuring implications, available state measures and other important data.
Please note that this guide is also available in Spanish. Click here to download the guide.