[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN CHILE] 26
The court will call both the creditor and the debtor for a hearing, where the debtor might adopt any of these attitudes:
This order is published in the Insolvency Gazette and obliges to
Deliver all the debtor´s post to the liquidator. Consolidate all the proceedings commenced against the debtor before the court where the liquidation is processed. Inform the public that it is forbidden for the debtor to receive any payment, otherwise it will be null and void. This is because the liquidator manages the debtor´s affairs during the process. Publish in the Insolvency Gazette that the creditors have the right to claim their credits within 30 days of the publication. Serve the order on overseas creditors by the most efficient method. Register the order in Public Registers in case of registered assets.
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Offering enough assets and proposing a term to pay its debts. Have the debtor failed to comply with this term, the debtor goes into liquidation. Accepting the creditor´s claim, so that the debtor goes into liquidation.
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Requesting commence
the
court
to
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a
judicial
reorganization proceeding.
Opposing the claim. This leads to a summary proceeding, where the debtor might invoke limited grounds for defense. If the court rejects the opposition, the debtor goes into liquidation. In any of these scenarios, the debtor is obliged to disclose the name, address, and contact information of its 3 main creditors. If this information is not provided, the debtor goes into liquidation.
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• Determine the date of the first creditor´s meeting. The main effects of the liquidation order are as follows:
As the effects of the liquidation order are the same in both voluntary and forced liquidation, they will be treated in the next section. c) Effects of liquidation proceedings The Agency appoints a liquidator (and a substitute liquidator) with the participation of the 3 main creditors. Having appointed the liquidator, and provided that the requirements set out above are fulfilled, the court issues the liquidation order.
The liquidator manages the debtor assets and affairs during the process. As such, the creditor has the power to seize debtor´s assets. Stays of proceedings are granted. Thus, the creditors are obliged to claim their credits within the liquidation.
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ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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