Publication: Argentina : Insolvency and Creditor Rights Systems
Date
2002-06-01
ISSN
Published
2002-06-01
Author(s)
World Bank
Abstract
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.
Citation
“World Bank. 2002. Argentina : Insolvency and Creditor Rights Systems. © Washington, DC. http://hdl.handle.net/10986/14997 License: CC BY 3.0 IGO.”