Reconciled Reorganization

Law 212 of 2021 has as its primary purpose the protection of credit and creditors in situations of insolvency originating during the national state of emergency or on the occasion of it. With a notice of intent, the debtor or his representative submits a reorganization request to the corresponding judge, expressing his intention to avail himself of the conciliatory process. In this process, the debtor and his creditors may negotiate with the assistance of a conciliator, who may be appointed by the parties, by mutual agreement. Also, they may require the assistance of an independent financial expert. Hearings may be held virtually, leaving a record of the outcome of the meeting. The purpose of the reorganization agreement signed between the debtor and its creditors is to restructure the assets and liabilities of the company. The conciliated reorganization process may conclude with the signing of a Conciliation Agreement approving the Continuity Plan. This plan will include, among other things, the analysis of the current and historical financial situation of the company, and the impact of the financial affectation due to the pandemic.