Insolvency and Restructuring

Contact: Headrick Rizik Alvarez & Fernandez (Dominican Republic)

On August 7, 2015, a new law on Restructuring and Liquidation of Companies and Business Persons (“Law No. 141-15”) was signed into law in the Dominican Republic. The law establishes mechanisms and proceedings to protect creditors in cases of financial difficulty of their debtors by allowing the latter to remain in operation and overcome the economic difficulties that thwart them from complying with previously undertaken obligations, thus achieving business continuity of companies and business persons. Likewise, the Law establishes a legal framework applicable to restructuring and cross-border insolvency proceedings. The Law will enter into effect on February 7, 2017, a date that is 18 months following its enactment.