This article discusses the challenges and updates in the application of the Dominican Republic restructuring and insolvency law, which came into force in February 2017. Since the law has been in force, the courts have developed criteria with regard to different topics that have raised questions, such as payment of officers’ fees and process expenses. Furthermore, important criteria have recently been established in relation to the scope of the jurisdiction of the courts and their ability to suspend decisions rendered by other courts during the insolvency proceeding whenever such decisions affect the assets of the debtor. Likewise, certain contradictions between norms have been addressed, such as Law 189-11 on trusts that incorporated an abbreviated foreclosure procedure clarity has been provided on the effects of the law and the scope of the stay of proceedings conceived by it.
Discussion points
• Conflict between legal instruments solved by courts in relation to stay of
proceedings, suspension of adjudication decision in foreclosure procedure
and jurisdiction of labour courts
• Misuse of writ of protection for registration of credits
• Challenges of restructurings through trusts
• Criteria for payment of officers’ fees
Referenced in this article
• Restructuring Law 141-15
• Executive Decree No. 20-17
• Reorganisation of Arconim Constructora, SA
• Reorganisation and liquidation of Transporte Duluc (Tradulca), SA Servicios
Petroleros, SA and AMG, SA
