Best Restructuring & Insolvency Lawyers in Buenos Aires

About Restructuring & Insolvency Law in Buenos Aires, Argentina

Restructuring and insolvency law in Buenos Aires, Argentina, forms a critical part of the country's commercial and financial landscape. These laws are designed to provide mechanisms for both individuals and companies facing financial distress to reorganize, negotiate with creditors, or, if necessary, proceed through a formal insolvency process. The primary goal is to protect the interests of all parties, offer opportunities for business recovery, and ensure that creditor claims are resolved efficiently and fairly according to legal priorities.

Why You May Need a Lawyer

Facing financial difficulties can be overwhelming. Whether you are a business owner, individual debtor, or creditor, there are several complex situations where professional legal help is vital. Common reasons to seek a lawyer specializing in restructuring and insolvency include:

• You are unable to meet your financial obligations and want to explore options for debt restructuring or bankruptcy.
• Your company is facing creditor action or possible liquidation proceedings.
• You need guidance through negotiating debt agreements or court-approved payment plans ( concursos preventivos).
• You are a creditor concerned about safeguarding your rights and maximizing recovery from distressed entities.
• You need to understand your legal obligations and potential liabilities as a director, officer, or shareholder of a company in distress.
• You seek to purchase assets from insolvency proceedings and need to navigate the acquisition process.
• You are facing cross-border insolvency issues involving Argentine entities.

Local Laws Overview

Restructuring and insolvency in Buenos Aires, as in the rest of Argentina, is primarily governed by the “Ley de Concursos y Quiebras” (Law No. 24522). This legislation provides the legal framework for both out-of-court restructurings, court-supervised reorganization processes, and bankruptcy (liquidation) proceedings. Relevant key aspects include:

• Concursos Preventivos - Court-supervised reorganization processes designed to allow debtors to reach agreements with creditors while continuing operations.
• Quiebra - Formal bankruptcy proceedings leading to the liquidation of assets and the orderly payment of creditors.
• Out-of-court Agreements (APE) - Agreements reached with creditors outside of court that can later be judicially ratified.
• Classification of Creditors - Claims are categorized (secured, labor, unsecured, subordinated) with payment priorities established by law.
• Court Involvement - Insolvency procedures are typically handled by specialized commercial courts in Buenos Aires.
• Automatic Stay - Upon formal filing, most individual enforcement actions are suspended to allow orderly restructuring or liquidation.
• Directors’ Duties - Directors and managers are required to act in the company’s best interest and can face civil or criminal liability for fraudulent activities or mismanagement during distress.

Frequently Asked Questions

What is the difference between a concurso preventivo and a quiebra?

A concurso preventivo is a court-supervised reorganization process aimed at allowing financially distressed debtors to restructure their obligations and continue operations. Quiebra, on the other hand, is the liquidation or bankruptcy process where the debtor’s assets are sold to pay creditors.

Can individuals as well as companies file for insolvency protection in Argentina?

Yes, both individuals and companies can initiate insolvency proceedings under Argentine law. The process and obligations may vary depending on the type and size of the debtor.

What is an APE (Acuerdo Preventivo Extrajudicial)?

An APE is an out-of-court agreement negotiated between a debtor and its creditors. If the agreement meets certain legal criteria, it can be judicially ratified, making it binding on all creditors involved, even those who did not consent.

What happens to lawsuits and enforcement actions once insolvency proceedings start?

The initiation of insolvency proceedings usually triggers an automatic stay, temporarily preventing creditors from pursuing or continuing individual collection efforts against the debtor.

How are creditors classified in Argentine insolvency proceedings?

Creditors are classified by law into categories such as secured creditors, preferred creditors (including employees and certain tax obligations), unsecured creditors, and subordinated creditors. The order of priority determines their payment from the debtor’s estate.

Can directors or officers be held personally liable during or after insolvency?

Directors and officers may face personal liability for wrongful actions, fraud, or gross mismanagement leading to insolvency. They must act responsibly and in good faith, particularly during periods of financial difficulty.

Is it possible to restructure only some debts without filing for full insolvency?

Yes, it is possible to negotiate private agreements with select creditors or pursue an APE, which allows for restructuring certain obligations without a formal concurso preventivo.

How long do restructuring or bankruptcy proceedings usually last?

The duration varies depending on the complexity of each case, the number of creditors, the estate’s size, and litigation issues. Some cases can be resolved within a year, while others can take several years to finalize.

Are cross-border insolvencies recognized in Argentina?

Yes, Argentine law provides mechanisms for recognition of foreign insolvency proceedings, although cross-border cases can involve additional complexities and require specialized legal advice.

Do I lose all my assets if I undergo bankruptcy in Argentina?

Not necessarily. In bankruptcy (quiebra), non-exempt assets are typically liquidated to pay creditors, but certain essential personal assets may be protected. The specifics depend on the individual circumstances and applicable exemptions.

Additional Resources

If you are seeking more information or assistance about restructuring and insolvency in Buenos Aires, the following resources may be helpful:

• Commercial Courts of Buenos Aires - Specialized in insolvency and commercial matters.
• Official Bankruptcy Trustee’s Office (Sindicatura concursal) - Appointed in insolvency proceedings to manage asset sales and creditor payments.
• Argentine Ministry of Justice and Human Rights - Provides public information about legal processes and rights.
• Chamber of Commerce of Argentina - Offers resources for businesses facing financial distress.
• Bar Association of the City of Buenos Aires - Directory of qualified insolvency lawyers.

Next Steps

If you believe you need legal assistance regarding restructuring or insolvency in Buenos Aires, Argentina, consider the following actions:

• Gather all relevant financial documents, contracts, and correspondence with creditors.
• Assess your current financial situation and make a list of your debts and assets.
• Consult with a qualified restructuring and insolvency lawyer experienced in Argentine law to evaluate your options, risks, and potential outcomes.
• If you are a creditor, seek advice on how to protect your rights in ongoing or upcoming insolvency proceedings.
• Prepare questions for your initial consultation to ensure you understand your rights and obligations under local law.
• Follow your lawyer’s guidance to navigate negotiations, court processes, or asset recovery effectively.

Taking early action and consulting with experienced legal professionals will help you make informed decisions and protect your interests throughout the restructuring or insolvency process in Buenos Aires.