Argentina : Insolvency and Creditor Rights Systems

In 1995, Argentina enacted a new modern insolvency law that substantially improved corporate liquidations and rehabilitations. After almost seven years of experience, some legal and institutional weaknesses persist: (1) corporate workouts are difficult in practice; (2) the unified insolvency regime causes severe problems in judicial interpretation of many legal provisions, causing court congestion with insolvency cases; (3) an uneven playing field discourages rehabilitation; (4) a lack of insolvency specialization among judges impedes efficiency and uniformity in large commercial centers; and (5) sindicos are perceived as lacking objectivity and sufficient expertise to manage complex restructurings. Liquidation proceedings take 1-5 years (depending on complexity), while reorganizations average 1½-2 years in jurisdictions with specialized judges (Mendoza, Cordoba) and 2-3 years in the others. To immediately improve the system, a new workout mechanism should be introduced to deal with systemic levels of corporate distress. In the medium term, other aspects of the legal and institutional framework should be improved.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2002-06-01
Subjects:	ACTIONS, ARBITRATION, ASSETS, AUCTION, BALANCE SHEETS, BANKRUPTCY, BANKRUPTCY COURTS, BANKRUPTCY LAW, BANKRUPTCY PETITIONS, BIDDING, BURDEN OF PROOF, CIVIL LAW, CIVIL LAW SYSTEMS, CLAUSES, CODES, CONFLICTS OF INTEREST, CONSUMER, CONSUMERS, CONTRACT LAW, CORPORATE BANKRUPTCY, CORRUPTION, COURT, CREDIT MANAGEMENT, CREDIT RISK, CREDITOR, CREDITORS, DEBT, DEBT RECOVERY, DEBT RESOLUTION, DEBTOR, DEBTORS, DEBTS, DEED, DEFAULT RISK, ENFORCEMENT ACTION, ENFORCEMENT ACTIONS, FAMILY LAW, FINAL JUDGMENT, FORECLOSURE, FRAUD, INSOLVENCY, INSOLVENCY LAW, INSOLVENCY REGIME, INSURANCE, INTANGIBLE ASSETS, INTELLECTUAL PROPERTY, JURISPRUDENCE, LAW, LAWS, LAWYERS, LEASE, LEGAL FRAMEWORK, LEGAL INFORMATION, LEGISLATION, LIQUIDATION, MARKET LIQUIDITY, MORTGAGE, MORTGAGES, MOVABLE PROPERTY, NEGOTIATION, OBLIGATIONS LAW, PERSONAL LIABILITIES, PETITION, PLEDGES, PRECEDENTS, PROVISIONS, REGULATORY FRAMEWORK, REPAYMENT, SECURED CREDITORS, SHAREHOLDING, SWAPS, TAX INCENTIVES, THIRD PARTIES, TIME, TRUSTS, UNANIMOUS CONSENT, UNDER CONTRACT, UNDER CONTRACT LAW, UNSECURED CREDIT, UNSECURED DEBT, VOTING,
Online Access:	http://documents.worldbank.org/curated/en/2002/06/7083112/argentina-report-observance-standards-codes-rosc-insolvency-creditor-rights-systems https://hdl.handle.net/10986/14997
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