Getting the Deal Through - Restructuring 2012

Fernández, Mary and García, Hipólito (2012)

The Dominican Republic continues to await approval of new insolvency legislation.

With respect to proceedings related to the judicial liquidation of a business, the proposed law maintains the French approach previously resorted to by the drafters of a proposal for a new Code of Commerce which is still, and has been for considerable time, pending congressional approval. In addition to preserving the option of judicial liquidation, the proposed law provides an approach towards the reorganisation of enterprises before the Chamber of Commerce, following the spirit of Law No. 4,582 of 195656, which established and made mandatory preliminary amicable settlement proceedings, before any creditor could initiate judicial bankruptcy proceedings under the old rules.

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