New law on restructuring and insolvency in the Dominican Republic

Fernández, Mary (2015)

On  August  7,  2015,  a  new  law  on  Restructuring  and  Liquidation  of  Companies  and  Business  Persons (“Law No. 141-15”)  was  signed  into  law  in  the  Dominican  Republic.  The  law  establishes  mechanisms and proceedings to protect creditors in cases of financial difficulty of their debtors by allowing the latter to  remain  in  operation  and  overcome  the  economic  difficulties  that  thwart  them  from  complying  with previously  undertaken  obligations,  thus  achieving  business  continuity  of  companies  and  business persons.

Likewise,  the  Law establishes a  legal  framework  applicable to restructuring and cross-border insolvency  proceedings.  The  Law  will  enter  into  effect  on  February  7,  2017,  a  date  that  is  18  months following its enactment.

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