The Panama Conciliation and Arbitration Center (CeCAP), based in the Chamber of Commerce, Industries and Agriculture of Panama (Cciap), presented to the business community its business reorganization services through conciliation, based on Law 212 of April 29, 2021, which establishes “Special Regime for Reconciliated Reorganization Processes carried out due to the National Emergency due to the COVID-19 Pandemic.”
Jose Ramón Icaza, president of the Cciap, He indicated that the objective of the reconciled reorganization processes is to promote the recovery and conservation of companies as sources of employment and to obtain resources to meet their obligations ”.
The CeCAP, private justice administration entity founded in 1994, will have the role of managing the reconciled reorganization of companies, through a regulation that regulates the conciliation procedure and each of its phases, including the choice of the conciliator, as well as the regulation of the administration fees and expenses, Icaza said.
On the particular, Cesar Tribaldos, president of CeCAP explained that, the conciliation to reorganize companies is an extrajudicial mechanism; where the debtor company and its creditors will negotiate a conciliation agreement approving a Company Continuity Plan, with the cooperation of a suitable third party (called a conciliator), which will allow the company to recover its financial prosperity after being impacted by the pandemic, and to preserve sources of employment.
In that sense, he said that, during the conciliation process, the chosen conciliator will authorize the debtor to present a notice of intention before the civil circuit judge or insolvency judge, which once presented, will grant the debtor company protection to compete for a maximum of six (6) months and suspension of the initiation of other judicial processes.
Individuals, merchants and mercantile companies that have a business address, branch, agency or establishment in the Republic of Panama and that meet the following requirements:
a.) That they are in a situation of default, imminent insolvency or foreseeable lack of liquidity due to the state of national emergency imposed by the COVID-19 pandemic.
b.) That they have a minimum of 24 months of continuous operation.
c.) That they present the notice of intention within a maximum period of 2 years, counted from the date of promulgation of the Law, without prejudice to the fact that the conciliation agreements can be executed in a period after two years.
For her part, the director of CeCAP, Liliana Sánchez, detailed some of the adjustments made by the Conciliation Center to provide this new service that consists of a regulation of Conciliation for Business Reorganization, affordable rates for micro, small, medium and large companies, as well as a list of Suitable Conciliators in Reconciled Reorganization.
In addition, he pointed out that the debtor or who represents him, the Board of Creditors, through his representative, are entitled to present a reconciled reorganization process. Similarly, it is mandatory for the creditors or the debtor, where appropriate, to appear at the reconciled reorganization procedure once requested before the CeCAP.
For the conciliator attend the reconciled reorganization in CeCAP, you must:
Have completed 35 years.
Be a professional with experience in the economic, financial, banking, legal or business administration areas or a professional with accredited experience in the company’s activity sector, as well as having suitability in their profession when required by law.
Be a suitable Conciliator and / or Mediator, through the Registry of Mediators and Conciliator with Specialty in Reconciliated Reorganization of the Ministry of Government
Be in full enjoyment of their civil and political rights
Not being included in some of the prohibitions of article 225 of the Judicial Code
Have approved Training that accredits you as a Conciliator in Reconciled Reorganization issued by CeCAP with a minimum of 40 hours of
Being a Member of the List of Conciliators and Mediators of CeCAP, Specialty of Reconciled Reorganization.