Panama: Bankruptcy Bill

The proposal seeks for insolvent companies to be eligible for a payment plan according to their financial capacity.

Friday, October 22, 2010

The project to be submitted to the Cabinet by the Ministry of Commerce and Industry, brings together the proposals of the Panama Banking Association and the Chamber of Commerce, "... calls for the creation of a National Corporate Restructuring, which depends on Mici and would be composed of three commissioners and an executive director," according to Prensa.com.

Companies taking advantage of this process may express to the committee the reason for the request and provide evidence to support its financial situation.

More on this topic

Panama: Bankruptcy Bill Moves Forward

May 2010

Currently, the country has no laws regulating the bankruptcy of commercial companies.

The Commerce and Industry Minister remarked that “right now, if a company goes broke, there is nothing left to do. In other countries, however, there are intermediate stages which give companies one last chance to recover and pay its debtors”.

Request for Bankruptcy Law in Panama

June 2013

One such example is the request by the developer of the Trump Ocean Club to make use of Chapter 11 of the U.S. bankruptcy code, in order to restructure its debt.

"Chapter 11 is a vital tool for businesses to survive and move forward. If it had existed in Panama, it would have been brought to light in Panamanian law.

A Bankruptcy Law for Panama

January 2016

The recent bankruptcy of RG Hotels and its impact on the market have once again put on the table the need for a legal framework to allow for orderly restructuring or settlement of failed companies.

A bill providing an adequate legal framework for companies facing financial difficulties that would allow them to be reorganized without having any adverse effects on third parties is one of the proposals that the Banking Association of Panama has been trying to bring to fruition for years, without success. The effects still being felt by companies and investors from the bankruptcy of RG Hotels reflects the need to promote legislation, which "... would be supported by the banking regulator, Ricardo Fernandez, Superintendent of Banks of Panama, who also confirmed an interest in the subject to ANPanamá. "

Panama: New Bankruptcy Law Firms

March 2016

The recently passed law allows for the efficient reorganization or liquidation of finances of companies that become insolvent.

From a statement issued by the National Assembly of Panama:

The creation of a bankruptcy insolvency regime which aims to save companies from closing has received its third reading in the National Assembly.

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