Colombia Insolvency Proceedings Could Double Due to Coronavirus

The number of companies filing for protection under Colombia’s insolvency law could nearly double in the coming months because of fall-out from its coronavirus lockdown, the head of the country’s companies regulator said, Reuters reported. The Superintendency of Companies has modified insolvency rules, which allow debtors to renegotiate their obligations with creditors so they can continue operating and avoid bankruptcy. The regulator has reduced negotiating time between companies and their lenders by 85%, will facilitate the sale of assets to pay debts, give tax breaks and suspend some regulations, all in a bid to improve firms’ cash flow and avoid mass job losses, superintendency head Juan Pablo Lievano said. “This is a symbiosis, a substantial and indivisible union where in order to keep employment we need to keep the companies,” Lievano told Reuters in a phone interview over the weekend. Read more