INDUSTRIA

DECEMBER 1,768

Consider a Special Advisory Commission for the Enforcement of Law 17.507, which establishes a special regime for companies that observe financial difficulties.


VISTO Law No. 17.507,

The President of the Argentine Nation,

Decrete:

Article 1 - For the implementation of Act No. 17.507, see a Special Advisory Commission which will be chaired by the Assistant Secretary for Social Welfare. The Commission shall be composed of four officials appointed by the State Secretariats of Finance, Industry and Trade, Social Security and Labour respectively.

The Special Advisory Commission shall exercise its functions in accordance with Act No. 17.507, the present Decree and the directives issued by the National Executive.

Art. 2o - The Industrial Bank of the Argentine Republic shall carry out the Secretariat of the Special Advisory Commission and provide the Special Advisory Commission with the necessary technical and administrative assistance for the study of the submissions for consideration.

In order to fulfil its mandate, the Commission may request information, advice or background from any official unit or agency, which must respond to the requirement as a matter of urgency and preferable dispatch.

Art. 3o - Companies under the conditions specified by Act No. 17.507 shall submit to the Secretariat, within the term set forth in article 3, applications for placement, to which they must necessarily accompany:

(a) Social Contract or Statutes;

(b) Nomine of its directors, partners or owners as appropriate, and manifestation of assets of each of them;

(c) General balance and statement of earnings and losses for the last three periods, and final quarterly statement;

(d) Detail of debts indicating the name of creditors, amounts, guarantees, maturity and origin of the respective receivables;

(e) Individualization of encumbered assets and those not affected to special privileges. For the first, the nature of the respective levies and their amounts shall also be indicated;

(f) Payment plan proposed for the fulfilment of the prospective and tax liabilities and the security rights and personal guarantees appropriate to those liabilities. If such assurances were in whole or in part of third parties, not covered by subparagraph (b) above, their respective manifestations of property should also be accompanied by the other property or statutory records that might correspond, and their written confirmation of assuming the guarantee;

(g) Express demonstration of the present on whether to make additional capital contributions. If so, it will indicate the amount of new contributions and the modalities of their integration;

(h) The basic information required by the Special Advisory Commission through the Secretariat.

The presentation of the above-mentioned background shall have a sworn declaration.

Art. 4o - The Special Advisory Commission shall proceed with such requests as may be submitted within the time limit set out in article 3 of Act No. 17.507, which shall be accompanied by the precedents set out in article 3 of this Decree and those required by the Commission under the authority granted by article 6 of this Decree. You will reject all requests that you do not find within the terms of Art. 1st Law No. 17.507. With regard to applications deemed admissible in principle, the Special Advisory Commission, at the request of the respective companies, may grant them a certificate that would enable them to perform the acts listed in Art. 4 of Law No. 17.250 and to conclude credit operations with Banking Institutions without the requirement of Art. 12th Act No. 14.499. This certificate shall be valid until the executive branch takes a decision on the application submitted. The Special Advisory Commission may not consider presentations by companies that have entered into special agreements to consolidate their liabilities with the National and/or Provincial State while they are in force.

Art. 5o - The Special Advisory Commission shall establish the conditions, requirements and obligations to be met by each company for the purpose of the intended treatment. The projects according to which the Special Advisory Commission has arrived with each company should contain the necessary measures to verify the implementation of the planned future action plans and appropriate guarantees of compliance. To this end they may include the designation of venettors, the caption of actions of value that means the control of the company, the creation of guarantees of any kind and extension, the prohibition of the distribution of profits or cash dividends, limitations on fees or any other retribution of the managers or owners, as well as any other precaution considered relevant. All the draft agreements shall contain the clause of their automatic expiry, which shall be operated on the first breach of the Company, the total credits that have been consolidated, with more interest, surcharges, fines that have been exempted and those that originated after the conclusion of the agreement, are immediately required. Similarly, the agreements will automatically expire if the company fails to meet its forecast or tax obligations, in relation to any expiry that is expected after the date of such agreements, unless the respective agencies, in accordance with the provisions in force, agree on special deadlines for cancellation, where the expiry will occur only if it is not fulfilled in term with such commitments.

Art. 6o - The Special Advisory Commission is empowered to have checks and to require additional information and other backgrounds that it considers of the case. The information and background shall be provided within the term indicated in each case by the Special Advisory Commission and its non-compliance, as well as any refusal with respect to the verifications or information requested, shall enable the Special Advisory Commission to consider the company discontinued.

Art. 7o - The Special Advisory Commission will elevate the Executive for its consideration, with a well-founded view:

(a) Projects according to which he has arrived with the Companies;

(b) The conclusions reached in cases where it understands that there is no legal or material possibility of conferring any solution to the submitting Company;

(c) Information on applications that had not been considered to be not falling within the terms of article 1 of Law 17.507;

(d) Information on applications that had not been considered on the basis of article 4 of the first paragraph;

(e) Information on the companies to which they were considered as being delisted under article 6o in fine.

Art. 8o - In cases where companies register significant debts with other State agencies or companies, provinces or municipalities, not represented in the Special Advisory Commission, they may be invited to participate in the draft agreements.

Art. 9o - The Special Advisory Commission shall terminate its mandate when the National Executive Power decides definitively on all matters submitted to it in accordance with the provisions of Article 7.

Art. 10. - This decree will be endorsed by the Ministers of Economics and Labour and Social Welfare and signed by the Secretaries of State of Finance, Industry and Trade, Labour and Social Security.

Art. 11. - Contact, post, give to the National Directorate of the Official Register and archvese.

Onganía. - Adalbert Krieger Vasena. - Conrado E. Bauer. - RAfael García Mata. - Angel A. Solá. - Rubens G. San Sebastian. - Alfredo M. Cousido.