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Experts are divided on the interpretation of the figures presented in the Insolvency and Re-Entrepreneurship Authority’s most recent public accounts.

Hugo Sánchez, Head of Insolvency and Re-Entrepreneurship, presented the 2023 participatory public report in the Gabriela Mistral University Auditorium, detailing Superir’s achievements and challenges in 2022.

One of the first points highlighted by the authorities was the addition of two procedures that allow individuals and companies to restructure their debts without reaching a liquidation. There were 506 requests for debtor renegotiation, of which 288 were admissible, a 55% increase compared to 2021. At the same time, 52 corporate restructurings were registered, which represents an increase of 63%.

On the other hand, personal liquidations are down 35% (2,306 requests) compared to 2021, while corporate liquidations are down 30% (1,037 requests). “It’s a positive for us that renegotiations and restructurings are showing higher percentage growth than liquidations, which have actually contracted because we’re talking about companies that are viable despite solvency issues, which Meaning there are no, for example, job losses, or those who are able to pay off their debts without losing their assets and significantly reduce their financial burden,” the director general commented.

In terms of user guidance, a total of 4,272 phone calls (-20%) were made last year, 3,939 face-to-face calls (+51%), 1,396 online calls (+77%), and 5,192 inquiries and complaints were answered. The main focus of complaints is the object of audit work.

Restructuring or Liquidation?

Pablo Bravo, a lawyer at, said: “Superir is bound to try to generate the idea that people prefer a reorganization or renegotiation process to a liquidation, but from an empirical point of view, This is absolutely wrong.”

He believes that there are differences in the analysis from March 2022 to March 2023. The number of renegotiations has decreased from 35 to 150, and the number of liquidations has decreased from 587 to 566. There is no comparison between the two. In a sense, as far as individual procedures are concerned, the priority remains liquidation.

As far as companies are concerned, the number of reorganizations has increased from 4 to 15, and the number of company liquidations has increased from 280 to 258. This phenomenon has repeatedly occurred and the distance has been shortened. However, compared with the liquidation procedures of companies and individuals, it is still not satisfactory.

“Anyway, it’s an important phenomenon that the media’s focus on bankruptcy law reform is only to facilitate renegotiation and reorganization. The media’s impulse has influenced people’s preferences, but not to the same extent as the good reputation that settlements have.” .

Bravo said people had always favored voluntary liquidation proceedings over renegotiation or restructuring because while the latter gave them new deadlines to restructure, the current national uncertainty meant they felt insecure being able to do so. The future will comply, even if the terms are more favorable than the original ones, and there is always the uncertainty that, if no agreement is reached, it may eventually lead to forced liquidation (bankruptcy).

economic deterioration

Likewise, a partner at CBC Abogados, Pablo CifuentesIt is worth noting that comparing the number of insolvency proceedings initiated in January, February and March 2023 with the number of insolvency proceedings initiated in the same month in 2022, it can be seen that there is no significant difference. This involves the liquidation of companies and individuals – which has remained steady (in large volumes) in both periods. However, renegotiations and restructurings did increase substantially.

“In other words, rather than renegotiation and restructuring taking precedence over liquidation, as the public accounts have exposed, because an increase in these processes is not reflected in a proportional reduction in liquidation, it seems to illustrate the increase, which in turn could lead to a worsening of the economy (at least for the same period in 2022).

new bankruptcy law

Regarding Superir’s achievements in 2022, Hugo Sánchez highlighted all the legislative work carried out in the last year to finally approve and promulgate the modernized Act, the current Regulation No. 20720, in January 2023.

“This milestone is very important, especially for natural persons and small and micro businesses, as a dedicated streamlined procedure has been created for this group, which is processed quickly and at low cost. With this reformulated legal framework, reorganization will take precedence over liquidation , which will encourage the restoration of credit, the preservation of employment and the severing of supply chains,” the top authority said.

The implementation of the new Bankruptcy Code, which will come into force on August 11 this year, is part of the challenge facing the regulator in 2023, “as it will involve conducting training, issuing regulations, applying technological improvements and developing plans.” This was done in a co-created way with different civil society actors, as well as public and private institutions, with the aim of keeping people and MIPE informed on how to use the simplified procedure”, explains the person in charge.

more friendly program

Moraga & CIA Attorney-Partner Diego Messen confirmed that the new bankruptcy law is indeed aimed at reforming 20,720, with the aim of making reorganization and liquidation proceedings easier, but emphasizing reorganization procedures because they are largely Built upon restructuring and liquidation proceedings. The deadlines are shorter and the procedure is cheaper and friendlier, especially for SMEs.

“Many times, when companies are in a situation of insolvency or economic crisis, they prefer to stretch the elasticity as much as possible in order not to have to incur restructuring costs, and unfortunately, many of them have fallen into liquidation. Therefore, it is now foreseeable To a situation where it is easier to obtain, from this point of view, if there is a financial crisis, this type of procedure can be used, which also has the advantage of obtaining a faster and cheaper way, but on the contrary and from the effect of restructuring See, financial security and things like that give them greater security, which just makes it easier for them to be in that position, rather than being penalized with stigma. Being in bankruptcy proceedings.”

For Mason, the process of restructuring and liquidation should increase under the law. He pointed out that this is more reliable than simply or going directly to liquidation, which is like the apex of such a process, which no one wants.

The article Superir Highlighting Personal and Corporate Bankruptcy Restructuring in 2022 was first published in Economics and Business News.


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