Useful Data
December 29, 2017 - 10:52

Over 1,700 companies have already applied to the Superintendency of Insolvency and Entrepreneurship in 3 years

by ROP

A total of 72,519 face-to-face consultations were recorded by the Superintendency of Insolvency and Entrepreneurship, 53% of them in the Metropolitan Region and 47% in the rest of the country in the three years that Law 20.720 has been in force. This law regulates companies and individuals facing insolvency and over-indebtedness situations, where entrepreneurs predominantly appear.

In this regard, the body responsible for reviewing this, the Superintendency of Insolvency and Re-Entrepreneurship, carried out 2,810 renegotiation processes with companies, 1,723 liquidation processes for companies (previously known as bankruptcy).

The liquidation procedures took an average of 292 days to process, where 22% of the companies that availed of these procedures belong to real estate and rental activities; 20% of wholesale trade and 17% of community, social and personal services.

Of these companies, 15% were zero to three years old, 37% had an age of 4 to 9 years, while 35% were from 10 to 20 years old, where 27% were microenterprises, 34% were small businesses, and 16% were large companies.

HOW TO DO IT?

If you have a company that unfortunately faces these types of situations, such as debts or potential liquidation (bankruptcy), you can approach the relevant Superintendent by meeting the following requirements.

Submit an application to start a Corporate Reorganization Bankruptcy Procedure, the model of which will be available in courts, in the offices of the Superintendence, and on its website.
Accompany to the competent court and the Superintendency of Insolvency and Entrepreneurship, as appropriate, the background required by articles 55 and 56 of Law No. 20.720, which aim to determine the liabilities of the Debtor Company.

This is an established procedure for the debtor company that is in default, aimed at the quick and efficient liquidation of its assets, in order to pay its creditors. This procedure involves the participation of a Liquidator.

If the Company decides to initiate a Voluntary Liquidation Procedure, it must submit an application to the competent court, accompanied by the following background information:

Listing of your assets, location where they are located, and the liens affecting them.
List of legally excluded assets from the liquidation,
List of their pending judgments,
State of debts, with name, address, and contact information of the creditors, as well as the nature of their claims.
Roster of workers, regardless of their contractual situation, indicating the labor and social security benefits owed, and priviledges if appropriate, and
If the Debtor keeps complete accounting, they will also present their latest balance.

Just in Case....

If we are asked what a settlement is, the following should be considered:

It is the formal closure of a business within a 12-month period.
They correspond to the quick and efficient sale of items to be able to pay creditors.
It is a benefit for the company's employees, regarding the issue of debt settlement.