Latin American Principles for the Conclusion of Out-of-Court Financial Restructuring Agreements

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Abstract

The limits and inconveniences of judicial insolvency proceedings have led to the development of alternative mechanisms that aim to be more flexible and, at the same time, to facilitate the rescue of companies experiencing financial difficulties. One of the most relevant forms of such mechanisms is the out-of-court restructuring agreement (workouts). The recently published Latin American Principles, which are subject of analysis in this paper, constitute an important example of this evolutionary line of insolvency law in various jurisdictions.

Keywords:

Out-of-court financial restructuring agreements, hybrid insolvency proceedings, insolvency proceedings