Bankruptcy law a Dominican Republic milestone: AMCHAMRD
Santo Domingo.- The approval of the Law on restructuring and liquidation of companies and individual businesses is a historic breakthrough in theDominican business and economic environment, the American Chamber of Commerce (AMCHAMRD)said in a statement Tuesday.
It said the law gives the nation a modern and updatedstandard for insolvency that protects the rights of creditors and employees, “therebycontributing positively to the investment climate, essential element for sustainedeconomic development.”
AMCHAMRD said it has developed studies, analyzes,discussions and finally proposals first individually and then jointly, to establisha legal and institutional framework on insolvency in the Dominican Republic.
It also lauds the leadership of Monte Plata senator CharlieMariotti and National District deputy Ito Bisono; the work by the Economy Ministryheaded by Temístocles Montas and other officials, in addition to the consensus amongprivate sector organizations such as the ABA, FINJUS and CONEP.
“This step represents progress that aims to reduce the perceptionof risk and facilitate private investment, thus contributing to the improvementof corporate governance systems, protection and maintenance of employment andthe rights of creditors,” the business association said, noting that the fact today,“we have this law which lets companies and individuals in business to deal withscenarios without the first option being financial or operational difficulties byshuttering the business or commercial activity.”
AMCHAMDR said the law aims to establish mechanisms andprocedures to protect creditors from debtors’ financial difficulty, which can leadto failure to meet obligations, and allows businesses and individuals to continueoperating by restructuring or liquidation procedures. “It also establishes thelegal framework regarding cooperation and coordination of cross-border restructuringand insolvency in the Dominican Republic.”