Cooperation in International Insolvency Procedures in the Dominican Republic
By Fabio J. Guzmán Saladín, Guzmán Ariza
Law 141-15 pertains to restructuring and liquidation of companies and commercial persons and places the Dominican Republic among the countries with the most advanced and modern legislation in the matter. Said law establishes procedures and mechanisms necessary for companies and local merchants to have options for surpassing financial diffculties without recurring to the liquidation of the company assets. Furthermore, it transcends the regulation of commercial restructuration and liquidation in an international situation by including, in its Title IV, the cooperation in international procedures. In this article, we will explain in detail the origin of this title, its objectives, its scope in international cooperation, and finally, its repercussions in the Dominican and international legal spectrum.
Regarding the specific category of the insolvency system, our country was placed in 160th place, due to the fact that the Dominican laws that govern the bankruptcy procedure can be traced back to the Napoleonic era. During this time, liquidation was the only foreseeable option, which implied high costs for the company and its creditors, as well as risks for the employees, in turn contributing to the uncertainty that emanated from the time these processes took and the negative impact they had in the national economy.
In the end, it was clear that a legal reform in the area was highly necessary to propel us into a higher level of commercial and industrial competition.
Law 141-15 states in Article 197 that the reach or postulates under which international cooperation operates are the following:
- With regard to a foreign procedure, a foreign court or representative requests assistance in the Dominican Republic;
- Request for assistance in a foreign state regarding a restructuring or liquidation process that is being carried out in accordance with the law;
- Simultaneous procedures pertaining to the same debtor, in a foreign process and a national process, in accordance with the law; and
- When creditors and other interested parties that are in a foreign state have an interest in requesting the start of a judicial restructuring or liquidation process, or in participating in a procedure that is being carried out in accordance with the law. The law limits the application of Title IV in cases where there is a conflict between the law and the content of international treaties that the Dominican Republic is a part of.
Fabio J. Guzmán SaladínGGI member firm
Guzmán Ariza, Attorneys at Law
Law firm services
Santo Domingo and six further offices throughout the Dominican Republic
T: +1 809 255 09 80
Guzmán Ariza is well-positioned to help their clients mine the business opportunities present in the Dominican Republic. With seven offices in the Dominican Republic, their team is wellconnected with local government offices and courts in each particular city or region. Lawyers and staff of this full-service law firm are oriented by training and practice towards international clients, which comprise more than 80% of their clientele. They handle legal matters in eight different languages.
Fabio J. Guzmán Saladín is a Partner of Guzmán Ariza law firm. As the cochair of the Corporate Practice, Fabio provides experienced legal counsel to public and private entities throughout every stage of their business. Fabio represents a wide range of domestic and international companies, including financial institutions, in business transactions that involve financing.
Published: Debt Collection, Restructuring & Insolvency Newsletter, No. 12, Spring 2020 l Photo: edan - stock.adobe.com