Executive Branch creates bankruptcy proceedings to avoid business insolvency and job losses

In the search for alternatives that allow the chain of payments to remain unaltered and avoid an economic crisis in the country, the Executive Branch has created, through the publication of Legislative Decree No. 1511, a mechanism called PARC: Accelerated Procedure for Bankruptcy Refinancing. This bankruptcy procedure is completely electronic, from the application stage to the one that includes the holding of virtual meetings with the creditors, the purpose of which is to accelerate a refinancing plan that provides protection to both the business and the company's employees.

Individuals, conjugal companies or undivided inheritances, whether or not they carry out business activities, are not eligible for the procedure, nor are entities or assets excluded by Article 2 of the General Law on the Bankruptcy System, such as public law entities, AFPs, persons who are part of the financial and insurance system and autonomous assets.

The PARC procedure will come into force one day after the approval of its regulation by the Presidency of the Council of Ministers.

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