Brief overview of insolvency proceedings

Fernández, Mary; and Alcántara, Melba (2018)

A new law on Restructuring and Liquidation of Companies and Business Persons (Law No. 141-15) was signed into law in the Dominican Republic on 7 August 2015. Law No. 141-15, entered into effect on 7 February 2017. It repeals the provisions of the Code of Commerce and Law No. 4582 of 1956, which was an obsolete framework for bankruptcy that dates from the 19th century.

The former framework only contemplated liquidation of businesses and did not provide for the possibility of a debtor’s reorganisation. The new law significantly reforms the existing insolvency procedures, incorporating the recommendations of the UNCITRAL Model Law of 1997 with respect to cross-border insolvencies.

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