Modifies The Law Nâ ° 18.175, Bankruptcy, Bankruptcy Agreements Relating To

Original Language Title: MODIFICA LA LEY Nº 18.175, DE QUIEBRAS, EN MATERIA DE CONVENIOS CONCURSALES

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"Sole article.-Introducense the following |! |" modifications to the law N ° 18.175, bankruptcy: 1. replace article 1, by the following: "article 1. This law is of the |! | following contests: bankruptcy; conventions |! | regulated in Title XII; and transfers of goods of the |! | Title XV.
The bankruptcy trial aims to perform in |! | a single procedure the property of a natural person |! | or entity, in order to provide for the payment of debts, in |! | cases and in the manner determined by the law. "."

2. amending article 5 of the next |! | (manera: a) added in its first paragraph, then de |! | the word "bankruptcy", the phrase "or in terms of |! |" Conventions".

(b) incorporate the following final paragraph: "the files relating to contests that |! |" just this law, may be removed by the |! | Superintendent of bankruptcy, the trustee or the expert |! | Facilitator. In cases in which another court |! | require the remission of original record or of any |! | notebook or parts of the process, the procedure will be fulfilled, |! | without exception, sending, at the expense of the petitioner or |! | the party which has lodged the appeal or made |! | management originating the request, copies or |! | respective photocopies. They must be duly |! | on each sheet, certified by the Secretary of the |! | Court. "."

3 modify article 8, in the form |! | (siguiente: a) replaced by the final paragraph of no. 2, to |! | continuation of the word "sub-paragraphs" the phrase "third, |! |" Fourth, fifth and sixth"with the following:" sixth, |! | " seventh, eighth, ninth and tenth".
(b) insert in subparagraph first of the No. 5 between |! | the word "sanction" and the expression "by the |! |" non-compliance "with the following expression:" by |! | " violations of laws, regulations and other rules than |! | govern them, as also".

4 Add in article 31 the following paragraph |! | Second: "the adoption of the definitive account prevents the |! |" exercise of the powers of the supreme audit institutions of the |! | Superintendent in relation to the items contained |! | in it, without prejudice to article |! | 1465 of the Civil Code. "."

5 amending article 37 of the next |! | (form: a) replace the phrase "notifications by |! |" notice in these failures and the |! | notification by the certificate referred to in subsection |! | Fifth item 42 ", by" notification by notice |! | " the judgement of bankruptcy, which will be done in summary, |! | and the notification of the decision having by |! | presented the final bill, which will contain only the |! | mention have arisen that account. Other |! | notifications that should be practiced by notice, be |! | They shall be carried out by the State newspaper".

(b) add the following second paragraph: "for the purposes of the notification by order to |! |" that referred to in the fifth paragraph of article 42 is |! | apply the privilege of poverty in bankruptcies that |! | This article and the receiver shall be required to |! | make the notification, without waiting for the resolution of the |! | incident that is Title XIII of the code de |! | Civil procedure, if this is any. "."

6 amending article 43, as is |! | (indica: a) replace, in paragraph 2, point and comma |! | (;) by ", and", and to replace, in paragraph 3, the |! | terms ", and" by a final dot (.).
(b) repeal of paragraph 4 of the article.

7 replace the expression in article 63 ' a |! | " year"by"two years".

8 modified article 77, in the way that |! | "(sigue: a) replace paragraph first words |! |" They may be cancelled"by the expression" are enforceable |! | " the mass".
"(b) replace in the second subparagraph the words |! |" they may be annulled"by the expression" are enforceable |! | " the mass".

Replace in the second paragraph of article 9 |! | "79 words"may be annulled"by the expression |! |" they are enforceable to the mass".

10 be replaced in article 80 the phrase "two |! |" preceding paragraphs"by" the 2nd and 3rd paragraphs of the |! | " "Title VI" and the final dot (.) by a comma (,), and |! | Add the phrase "term that is suspended in favor of |! |" creditors for a period of two years from the |! | date of the resolution declaring the bankruptcy".

11 replaced in the final paragraph of the article |! | 148 the dot (.) by a comma (,) and added the |! | next sentence: "without prejudice to the transaction |! |" conventional or judicial to be held subsequently |! | the notification of the judgment of first instance |! | of respective employment or pension judgment. "."

12 replace the title XII of the Act, by the |! | Next: "Title XII extrajudicial agreements and conventions |! |" COURT 1. Article 169 extrajudicial agreements. Any settlement |! | concluded between the debtor, prior to its Declaration of |! | bankruptcy, and one or more of your creditors on payment |! | of its obligations or to the administration of their property, |! | only requires people who subscribe to it, even when it le |! | name Convention.

Article 170. The previous article |! | shall not apply to agreements governed by the law |! | General of banks and by the decree with force of law Nº |! | 251 of 1931, on insurance and other companies |! | agreements regulated by law.

2. in article 171-preventive Judicial Convention. The preventive judicial Convention is |! | that proposed by the debtor prior to the |! | Declaration of bankruptcy and in accordance to the |! | provisions of this paragraph. Includes all your |! | obligations existing at the date of the resolutions to |! | (que se refieren las letras a) and b) article 200, even |! | When non-expired term, except that the law |! | except expressly.

Article 172. Without prejudice to the provisions in the |! | previous article, the creditor who is in |! | one of the cases provided for in paragraphs 1 and 2 of the |! | Article 43, may request the competent court to |! | order the debtor, or the debtor succession formulate |! | proposals of preventive judicial Convention within the |! | period of 30 days from the notification effected |! | in the form provided for in the final paragraph of article 45. |!| The non-submission of the Convention within the deadline |! | indicated, will entail, necessarily, the bankruptcy of the |! | debtor and the Court will declare it ex officio.
In the case of the preceding paragraph, the debtor may, |! | within five days from notification of |! | the request, say that it welcomes irrevocably |! | Article 177 ter, and the judge will be mentioned to the Board of |! | creditors referred to in that provision.

The right of the creditor may not be exercised by |! | persons referred to in the third subparagraph of the |! | Article 177 bis. If it pursues with regard to the |! | succession of the debtor, the provisions shall apply in the |! | Article 50.

Once notified of your request, the creditor not |! | You can remove it or withdraw from it. May not be |! | object of transaction of any kind. The payment made to the |! | requesting creditor after submitted your request |! | It shall be null.

Against the decision ordering the debtor file |! | an agreement, only you can enter into a resource of |! | replenishment; and against which resolves the replacement not |! | recourse shall proceed. In this case the term to be |! | referred to in first subparagraph shall be 20 days, counted from |! | the resolution which fails the replacement.

If the Court rejects the request of the creditor, |! | This may request in accordance with the present bankruptcy |! | law; But if the bankruptcy petition is based on the same |! | causal invoked and in identical basis in fact, |! | You must request the Court that rejected the |! | request.

Article 173. Convention propositions |! | judicial preventive to make the debtor and requests |! | of the preceding article, shall be submitted to the Court |! | that would be competent to declare bankruptcy, |! | without prejudice to the provisions of article 180. The |! | proposals of preventive judicial Convention must |! | be accompanied by all the background that |! | determines the article 42, with express mention of the |! | domicile in Chile's three largest creditors, |! | (excluidos aquéllos a que se refieren las letras a), b), |! | (c) of article 190 and shall contain a proposal of |! | fees for the trustee that is designated.

Presented the proposals of this kind of |! | Convention, the judge shall designate to the Syndic and |! | to the alternate who nominate the creditor residing in |! | Chile appearing with greater credit in the State of |! | debt by the debtor to the Court. For these |! | effects, the clerk of the Court will take care that was |! | notified as soon as the indicated creditor, shaped |! | reliable, so that this nomination by |! | written to the Court within a period of five days of |! | made the designated notification. If within said |! | term the creditor does not make the nomination or respective |! | According to certification by the Secretary has been |! | impossible to notify the creditor in a short period, the |! | Court shall notify the resident creditor in Chile than |! | have the second largest credit, so perform the |! | nomination in the expressed form. If thing |! | designated proves impossible to apply, be appointed to the |! | trustee through the draw established in subsection |! | end of article 42, of all of which will be left |! | documentation detailed in the record.

Article 174. The Court shall appoint the trustee |! | holder and the substitute nominated in accordance |! | in the previous article. In the same resolution |! | available:
1.-the debtor is subject to intervention |! | of the designated Syndic, who shall have the powers |! | Article 294 of the code of Civil procedure;

2. the trustee will inform the Court about the |! | agreement within a period of twenty propositions |! | days, which will be renewable only once to request |! | of the receiver for a maximum of ten days, as determined by |! | the Court. (Este informe deberá contener: a) qualification founded about whether the |! | proposal is likely to be enforced, given |! | consideration of the conditions of the debtor;

(b) the appreciation of the Convention will result more |! | suitable for creditors that the bankruptcy of the |! | debtor; (y c) the likely amount of recovery that you |! | It would be up to each creditor in bankruptcy valista, |! | for the purposes of article 190 the second paragraph.

If the trustee does not submit statement report within the |! | deadline, the debtor or any of the creditors |! | It will occur to the judge so set you a new deadline or |! | so he takes office the alternate trustee and, for |! | In addition, day and time set new to the Board.

The informant trustee must submit an account |! | end of his intervention within a period of 30 days |! | counted since the Convention to come into force;

3. that all creditors without exception |! | arise and verify their claims with the |! | supporting documents under corresponding |! | warning for further processing without |! | to quote any absent, without prejudice to the right to |! | vote that corresponds to them in accordance with article 179. These |! | credits may be verified until the day fixed for |! | the holding of the meeting in accordance with the number |! | Next, and may be challenged by the debtor and |! | any creditor until the last day of the term than the |! | the first subparagraph of article 197 points to challenge the |! | Convention. Those uncontested will be taken by |! | recognized;

4.-creditors attend a Board, |! | may not take place before overcoming the thirty days |! | following this resolution, to deliberate on the |! | selection of Convention;

5.-who is personally notified of this resolution |! | to the titular and alternate, trustee for the purposes of thing |! | provided in article 26, and by card all three |! | largest creditors referred to in subsection first |! | of the preceding article.

Other creditors will be notified in |! | According to the following article; and 6.-in third day of effected the |! | last notification to designated persons in the |! | the first paragraph of the preceding number, the Syndic |! | holder, the three largest creditors concerning the |! | previous number and the debtor to attend a hearing, |! | which shall be carried out with those who are, for |! | to decide on the proposal of fees of the |! | trustee that the debtor has had to in the |! | propositions of Convention. If not agreement arises |! | on the amount of fees and form of payment or no |! | formed none of the above, shall be fixed by the judge |! | without further recourse.

In the event of bankruptcy, the amount of 50% |! | the fees of the trustee shall have the preference |! | the number 4 of the 2472 article of the Civil Code.

Article 175. The proposed Convention should be |! | notified by the debtor to his creditors by means of |! | a notice in the official journal, which must contain a |! | Summary of the proposition and full copy of the |! | resolution referred to in the preceding article. This |! | notification must be within the period of 8 days |! | counted from the date of this decision.

The proposed Convention will be by no |! | presented if the notification is not made within the |! | deadline, unless justified impediment, |! | qualified by the Court.

Article 176. Once notified the proposition of |! | Agreement, it may not be withdrawn by the proponent. |!| It is understood that the debtor in article 41 |! | He has complied with the obligation that sets this |! | available, if the proposals have been tabled |! | within the time specified therein, provided that they are |! | notified within the period referred to in subsection |! | first of article 175.

Article 177. The processing of this kind of |! | Convention no embarazará the exercise of any of the |! | actions proceeding against the debtor, not |! | it suspended the lawsuits, nor prejudice to the |! | realization of assets. However, it suspended the |! | period of limitation of actions referred in the |! | Paragraphs 2 and 3 of title VI from the date of the |! | resolution that is presented or the |! | resolution ordering quote Board of creditors in the |! | case of article 177 ter.

Apply to this kind of agreements the |! | provisions of paragraph 5 of the title VI. The reference |! | that article 93 does the trustee, must understand, in |! | this case, made to the debtor.

In relation to compensation, applies to |! | These conventions so that the bankruptcy has the |! | Article 69, to tell of the resolution that it falls in the |! | propositions of Convention.

Article 177 bis. Notwithstanding the provisions in the |! | previous article, if the proposed Convention |! | judicial preventive has been backed |! | two or more creditors representing more than 50% of the |! | total liabilities, not able to request is the bankruptcy of the |! | debtor or initiated against Executive lawsuits, |! | executions of any kind or restitution in the |! | trials of lease, the ninety days |! | following notification by the resolution notice |! | at the Court to cite the creditors Board for |! | discuss this proposition. During this period, |! | designated legal proceedings will be suspended and |! | they will not run the extinctive limitation periods.

Liabilities shall be determined on the basis of the State to |! | that referred to in article 42 number 4, certificate of |! | According to the information available and which have |! | accessed from the records of the debtor, by auditors |! | external, independent, and enrolled in the registry than |! | It carries the Superintendency of securities and insurance.

For the purposes of the calculation of the total liabilities and |! | (de la mayoría antes indicada, sólo se excluirán: a) persons who are in any of the |! | situations referred to in article 100 of the law |! | No 18,045, securities market; (y b) the owner of the sole proprietorship of |! | proponent limited liability of the Convention and this |! | sole proprietorship if the proposer is its owner. |!| In the case of the first paragraph, the creditors |! | privileged and mortgage do not lose their |! | preferences, and may impetrar measures |! | conservative remedies.

In the notice published be designated as |! | Express if the designated majority met in the |! | the first subsection.

The provisions of the first subparagraph shall not apply to |! | labour judgements on obligations benefiting from |! | first class privilege, except that the debtor |! | It has, in that capacity, for your spouse or your |! | relatives or managers, administrators, attorneys |! | or other people who have had or are involved with in |! | the administration of their businesses. For these effects is |! | means relatives to ascendants and |! | descendants and the side up to fourth grade, |! | inclusive.

During the period of suspension referred to in |! | This article, the debtor may not encumber or alienate their |! | goods. You can only dispose of those exposed to a |! | next deterioration, or an imminent devaluation, or |! | those who require a wasteful conservation, and you can |! | encumber or alienate those whose assessment or alienation |! | are strictly indispensable for normal |! | development of its activity, which always count with |! | the prior permission of the trustee for the execution of |! | such acts.

The period referred to in subsection first is |! | fatal and non-extendable. If within it will not remember the |! | Convention, ex officio, the Court shall declare bankruptcy.

The time limits referred to in article 63 and in the |! | Paragraphs 2 and 3 of title VI will be expanded in so many |! | days how many reinstated from the date of the |! | resolution issued in Convention propositions |! | up to the date of filing for bankruptcy.

Article 177 ter. The debtor may apply to the |! | Court which is competent to hear his bankruptcy, |! | accompanying your application all the background |! | designated in article 42, which cite a Board of |! | creditors, which will take place within 10 days |! | counted from notification by notice of the |! | resolution issued in the request, so she |! | appoint an expert facilitator. This will be subject to |! | the control of the Superintendent of bankruptcy, the |! | for these purposes will have all the powers and |! | duties that said you article 8. This term not be |! | it suspended during the judicial holiday. If the application |! | of the debtor to the Court has been presented within the |! | Article 41, the notification period should be |! | within a period of eight days from the date of |! | the resolution. If the notification is timely is |! | It means that the debtor in article 41 has |! | given compliance with the obligation that sets this |! | provision.
The resolution referred to in subsection |! | earlier, the judge shall designate an auditor that |! | only exercise the powers as the seventh paragraph of the |! | previous article and the second and third subparagraphs of the |! | Article 102 grant to the trustee. The financial controller shall cease |! | on the day of the Board duties, when this not |! | appoint an expert facilitator, either on the day |! | This assumes in his position, if the Board has appointed it. The |! | remuneration of the auditor shall be fixed by the judge, |! | It will be in charge of the debtor and will have the preference of the N ° |! | 4 of the 2472 article of the Civil Code.

The expert facilitator, within a period of 30 days |! | non-extendable, counted from the conclusion of such a |! | together, should assess the situation of legal, accounting, |! | Economic and financial of the debtor and propose to their |! | creditors an agreement that is more advantageous to the |! | bankruptcy of one, or, if not, request to the |! | Court declaring the bankruptcy of the debtor, where the |! | You must declare without any further formality. If the expert |! | Facilitator not give fulfilment to their role within |! | the deadline the judge will issue ex officio the |! | judgment of bankruptcy of the debtor.

Have the right to vote in the designated Board in the |! | first subparagraph, creditors appearing on the |! | State referred to in article 42 N ° 4, |! | certificate, according to the information available and a |! | which have accessed the records of the |! | debtor, by external, independent auditors and |! | entered in the register which has Superintendence |! | of securities and insurance, with the exception of creditors |! | mentioned in the third paragraph of article 177 bis. The |! | facilitating expert designation will be made with the vote |! | of one or more of the creditors representing more than the |! | 50% of the total liabilities with voting rights; in case |! | If not, shall be deemed unsuccessful management. The |! | mortgage and privileged creditors will not lose its |! | preferences by the circumstance of participate and vote |! | on this Board, and may impetrar measures |! | conservative remedies. The expert facilitator will be |! | notified in the form referred to in article 55.

May be facilitating expert any natural person |! | able to manage their own property. The Trustees of |! | the national payroll may be appointed as experts |! | facilitators, but in the event of bankruptcy of the debtor not |! | they may be appointed as trustee in the bankruptcy.

The expert facilitator shall communicate its |! | designation to the Superintendent of bankruptcy within |! | the next 24 hours, which will proceed to incorporate this |! | to a special register of expert facilitators than |! | It will take effect.

The expert facilitator fees will be de |! | charge of the debtor, with whom he must negotiate them. In case of |! | disagreement will be fixed by the judge, and shall have, to the |! | as well as the expenses incurred, the preference |! | n ° 4 of the 2472 article of the Civil Code, only in the |! | part that corresponds to 25% of which is once |! | applied the table referred to in article 34. |!| May not apply for the bankruptcy of the debtor or start |! | against Executive judgments or executions of |! | any class, from the notification notice |! | (señalada en el inciso primero: a) up to the celebration of the aforementioned Board for the |! | the expert facilitator designation, if not |! | approve it this designation;

(b) to request the expert facilitator to the |! | Tribunal so declares the bankruptcy of the debtor;

c) until the holding of the meeting of creditors to |! | that referred to in the penultimate subparagraph of this article, if |! | refuses her proposition of Convention presented |! | by facilitating expert.

During the periods indicated, will be suspended |! | such court proceedings, will not run deadlines |! | extinctive prescription, and the debtor will retain the |! | administration of their property, with the limitations |! | in the seventh paragraph of article 177 bis, |! | subject to the intervention of the expert facilitator, with |! | the same powers which this delivered this subsection and |! | the N ° 1 of the first subparagraph of article 174.

The expert facilitator will have full access to all |! | books, papers, documents and history of the |! | debtor that it considers necessary for the fulfilment of its |! | committed.

All this procedure shall apply |! | in the sixth paragraph of the previous article.
Where the expert facilitator formule one |! | proposition of Convention, this must be voted in Board |! | creditors within the term of 15 days counted from |! | the notice by notice of the proposition. Is |! | they apply to this proposition the articles 175, subsection |! | First, 178, 179 and 180 and the standards contained in the |! | Paragraph 4 of title III of this law.

The time limits referred to in article 63 and in the |! | Paragraphs 2 and 3 of title VI will be expanded in so many |! | days how many reinstated from the date of the |! | resolution issued in Convention propositions |! | up to the date of filing for bankruptcy.

Article 177 quater. If the proposed Convention |! | judicial preventive has been backed |! | two or more creditors representing more than 66% of the |! | total liabilities, shall apply in the |! | Article 177 bis, subject to the following modifications: 1. the judge will be mentioned to a Board that should be |! | make more no later than 30 days are numbered from the |! | notice of the judgment notification |! | respective;
2. the trustee appointed in accordance to article |! | 173 won't have the function to inform designated at N ° 2 |! | item 174, and 3. The suspension will remain until the set day |! | for the Board, which must agree to or reject |! | the Convention in accordance with the provisions of this |! | Title.

Article 178. Convention propositions |! | judicial preventive can be about anything |! | permissible to prevent the bankruptcy of the |! | debtor, except on the alteration of the amount of the |! | fixed credits to determine liabilities.

The Convention will be one and the same for all the |! | creditor, unless any unanimous agreement in |! | Instead, in accordance with the provisions of subsection |! | following.

The agreement will contain a proposal |! | main and alternative to it for all propositions |! | creditors, in which case they should opt for |! | guided by one of them, within ten days |! | from the date of the meeting which agreed.

It is may agree that you issues or |! | differences that occur between the debtor and one or more |! | creditors or between these, on the occasion of the Convention and in |! | special application, interpretation, compliance, |! | annulment or declaration of default can or should be |! | submitted to the knowledge or resolution of a judge |! | arbitrator, as also establish the nature of the |! | arbitration and any other matter on it.

This arbitration agreement shall be compulsory for |! | all those who are affected by the Convention.

If the referee declared null or breached the |! | Convention, shall immediately record the Court |! | respective appeals, for the designation of the |! | Court which shall declare bankruptcy in accordance to |! | This law.

Article 179. The trustee, or the financial controller in the |! | the second paragraph of article 177 ter case, will present |! | a list of creditors entitled to vote and their |! | respective credits 10 days prior to the |! | date for the Board.

On the fourth business day that is not a Saturday, |! | immediately prior to the designated for celebration |! | of the Board, shall be the verbal hearing to be |! | They referred to the second and third subparagraphs of article 102.

Creditors who have lodged with the |! | documentary evidence of their claims, but that |! | lack of voting rights, will have only straight to |! | attend the meeting and written record of |! | his remarks, under his signature, in document is |! | It will add to the relevant Act.

Exclusion, inclusion, increased or the |! | decrease by the trustee of a credit in the |! | Payroll referred to in subsection first this |! | Article, without justified reason, shall be considered |! | as serious misconduct for the purposes of the provisions on |! | Article 8° N ° 9.

On the boards of creditors that are carried out with |! | subsequent to the approval of the judicial Convention |! | preventive right to vote shall be determined in |! | pursuant to article 102. Not entitled to vote |! | the creditors included in article 190.

Article 180. Judicial Convention propositions |! | preventive of the companies subject to supervision by |! | the Superintendency of securities and insurance, excepting |! | of insurance companies, must be presented |! | before an arbitral tribunal appointed in accordance to the |! | following items.

The jurisdiction of the tribunal extends to |! | all that is necessary for the processing of the |! | proposals of preventive judicial Convention and the |! | incidents that are promoted during the procedure of the |! | same, until the resolution which it adopted |! | It is enforceable. If the Convention |! | rejected or discarded, the arbitral tribunal shall declare him |! | so in a decision which shall be final, and shall forward of |! | immediate record to the Court of appeals |! | respective, that is designated by the Court to |! | It will declare bankruptcy without further formality and proceed to the |! | designation of the trustee in accordance to article 209.
Article 181.-The arbitral Tribunal, which shall be |! | unipersonal, shall be appointed by the President of the |! | Corresponding to the set home court of appeals |! | in the statutes of the proponent institution, which will be |! | also the home of the Court, from among lawyers than |! | they have practiced the profession for more than 20 years and is |! | are on a list that will take the |! | Superintendency. There will also be a Deputy referee |! | who shall be appointed by the President of that Court to |! | proposition of the titular arbitrator among those enrolled |! | in the aforementioned list.

The Court will include a Secretary, charge that |! | It will be exercised by a notary who has his office in the |! | City in which the arbitrator is domiciled who |! | You must designate it.

The referee may be replaced by the Board of |! | Creditors, the debtor, without the agreement |! | established in the first subparagraph.

The referee will be right and your acceptance of the |! | charge must be made to the Secretary of the |! | respective Court of appeals.

Article 182.-Notwithstanding the above in the |! | previous article, the nature of joint may be granted |! | the arbitrator consents to this debtor and they agree |! | two or more creditors representing more than 50% of the |! | total liabilities, in the case of the societies to which are |! | concerns article 180 first paragraph, or 75% of the |! | total liabilities, in the case of article 184. In these |! | cases, the arbitrator shall be appointed by the same Board of |! | creditors who give this character and the acceptance of the |! | charge must be in the designated form on the |! | final paragraph of the previous article.

Article 183. The costs of arbitration will be de |! | charge the proponent debtor's bankruptcy |! | they will have the preference provided for in no. 1 of article |! | 2472 Civil Code.

Article 184. May also be submitted to |! | arbitration in accordance with the preceding rules, the |! | proposals of Convention of any debtor, if this |! | accords it with creditors that they represent at least |! | 66% of total liabilities, duly certified in |! | accordance with the provisions of the second paragraph of the |! | Article 177 bis.

Article 185.-The arbitral tribunals to be |! | They referred to the fourth paragraph of article 178 and the |! | articles 180 and 184 shall have the following powers: 1 ° be permitted, in addition to the evidence |! | established in the code of Civil procedure, |! | any other kind of test; and order ex officio the |! | evidentiary proceedings as it deems suitable, with |! | summons of the parties. They will, in addition, on all |! | time, access to books, documents, and media of |! | any class in which are contained the |! | operations, acts and contracts of the proposer of the |! | Convention; and 2 ° will appreciate the test standards |! | of healthy criticism, and must be entered in the respective |! | resolution the foundations of such appreciation.

3 of article 186 simply judicial Convention. Is simply judicial Convention |! | that is proposed during the trial of bankruptcy for |! | put an end.

Article 187. The failed or any of the |! | creditors can make propositions of Convention in |! | any State of bankruptcy. Presented the |! | Convention proposals, creditors will know them |! | and decide on them in a quoted Board |! | especially to the effect by notice, indicating |! | Express if the required majority has met in the |! | second paragraph of the following article, not before de |! | 30 days.

Shall apply to this kind of agreement in |! | Article 178.

Article 188. The processing of this kind of |! | Convention not pregnant the exercise of any of the |! | actions that they are against the failed, does not suspend |! | the procedures of bankruptcy or lawsuits |! | it nor preclude the realization of assets.

However, if simply judicial Convention is |! | those who make supported by at least 51% of the total |! | passive of the bankruptcy, the trustee may only alienate the |! | assets exposed to a next deterioration or a |! | imminent devaluation or those who require a |! | wasteful conservation.

Liabilities will be certified by the trustee. Is |! | excluded creditors referred to in subsection |! | third article 177 bis.

Support this kind of agreement, because the |! | mortgage and privileged creditors will not lose its |! | preferences.

Article 189. Simply judicial Convention the |! | right to vote of creditors shall be determined in |! | pursuant to article 102. Not entitled to vote |! | the creditors included in article 190.

4. for the approval of the judicial conventions article 190. The Convention shall be deemed agreed |! | When the consent of the debtor and gather to |! | your favor the votes of two-thirds or more of the |! | concurrent creditors representing three-quarters |! | parts of the total of the passive right to vote, |! | excluding preferential loans whose holders are |! | they have abstained from voting for them. Not to vote, neither |! | (sus créditos se considerarán en el monto deel pasivo: a) the spouse, ascendants and descendants and |! | Brothers of the debtor or their representatives, without |! | prejudice to the provisions of article 193;

(b) persons who are in any of the |! | situations referred to in article 100 of the law |! | (Nº 18.045, de Mercado de Valores, y c) the owner of the sole proprietorship of |! | proponent limited liability of the Convention, and this |! | sole proprietorship if the proposer is its owner.

To obtain the majority needed to approve |! | the Convention, a creditor with a right to vote can be |! | exclude other accompanying your order view vale by a |! | least the minimum sum that corresponds according to the |! | (letra c) of number 2 of article 174, the deadline |! | five days from the holding of the meeting. |!| After that deadline, unless it has consigned such |! | amount, the creditor vote shall be deemed issued |! | that attempt to exclude. For these purposes, in the |! | simply judicial Convention, the trustee must |! | report on the Board to submit the approval of the |! | the number 2 (convenio, sobre lo dispuesto en la letra c) |! | of article 174.

Dissident creditor may object to the amount, |! | objection that will be processed as incident. If it hosts the |! | incident, it may exclude the dissident paying the |! | set difference; But if the exclusive creditor |! | not agree to pay the higher value shall include both |! | creditors in the Convention by the proportion that |! | corresponds to each one. In any case, the creditor |! | excluded shall keep, in the part that apply to you, their |! | actions against the third person obligated to pay de |! | your credit, and these may assert over the quota |! | that such secured creditor retains the Convention, rights |! | that by way of subrogation or refund you apply them.

The Convention shall be deemed agreed in the case of the |! | preceding paragraph when the clerk of the Court |! | certify the timely appropriation that was |! | get the majority referred to in the paragraph.

You must get up a record of the operation. There are |! | It shall mention the creditors that have voted in favour |! | and to those who have voted against the Convention, with |! | expression of the credits that representaren.

The modification of the Convention must be agreed with |! | the same procedure and with the same majorities |! | required by subparagraph first of this article, |! | excluded loans whose titles are subsequent to |! | the primitive propositions of the approved agreement that |! | It is intended to modify, who does not require.

Article 191. The preferential creditors regarding |! | property or the estate of the debtor may attend to |! | the Board and discuss the propositions of Convention and |! | vote if they renounce their credit preference. The |! | circumstances that a creditor vote, matter the |! | renounce the preference. Only for creditors than |! | they have voted against, in the event of the rejection of the |! | Convention, the renunciation of the preference will be the |! | irrevocable character. Renunciation may be partial, |! | whenever it occurs specifically. If a creditor |! | is the owner of preferential and non-preferential credits, are |! | presumed right who votes for their credits not |! | preferred, unless express otherwise.

If creditors vote for credits |! | preferred, these amounts will be included in the |! | passive, for the purposes of the calculation referred to in the |! | previous article for the sums to which any |! | reached the resignation.

Assignees of claims acquired inside of |! | the last 30 days prior to the proposition, not |! | they may attend the Board to deliberate and vote the |! | Convention, and may not challenge it or act in the |! | challenging incident.

Article 192. The Convention will provide the |! | Constitution of guarantees to ensure compliance |! | the obligations of the debtor. May hereto |! | be in the Convention itself or in instruments |! | separate.

Without prejudice to the provisions of article 207 N ° |! | 8, creditors may appoint one or more of them |! | so that represent all affected creditors to the |! | Convention on the celebration of the events and in the |! | subscription, publication and registration of the |! | instruments which are necessary for the due |! | Constitution of guarantees, as well as for the |! | exercise the rights and actions emanating from them |! | and to be notified and cited in cases in which thus |! | the law with respect to secured creditors |! | (e) mortgage.
Publications and inscriptions of the |! | guarantees referred to in this article shall not be |! | necessary to identify the obligations of the Convention, |! | It's enough in this respect with reference to |! | He, pointing to the notary and date on which it has been |! | formalized under the provisions of subsection |! | following.

A certified copy of the minutes of the Board that was |! | agreed Convention, and the resolution to adopt it, |! | with its certificate of record, it must formalize |! | a notary of the place in which the Board has been |! | held, and since then will be worth as writing |! | public for all legal purposes. The minutes of the |! | Board shall include the full text of the Convention.

Article 193. Persons referred to in the article |! | (190 letra a), may vote on the Board only for |! | opposed to the Convention and, if so, their credits are |! | included in liabilities for the purposes of the computation to |! | that article refers.

Article 194. The non-appearance of the debtor to the |! | Board that should be discuss propositions de |! | Convention, personally or represented, will boast |! | that leaves them or reject them. If the proposition is of |! | preventive judicial Convention, the Court shall declare the |! | bankruptcy. All of the above, except justified excuse.

Article 195. Agreed Convention, this will be |! | notified by notice, through an authorized excerpt |! | by the Court to the creditors that do not have |! | attended the meeting.

Article 196. The agreement may be challenged by |! | any creditor to whom this might affect you, only |! | If alleged any of the following causes: 1. defects in the forms established for the |! | Convocation and holding of the Board, or error in the |! | computation of the majorities required by law;
2 misrepresentation or exaggeration of the credit or |! | inability or lack of legal capacity to vote any |! | of those who have attended vote form the |! | most, if excluded this creditor, any of |! | disappearing such majority;
3. one or more fraudulent intelligence |! | creditors and the debtor to vote in favour of the Convention or |! | to refrain from concur;
4 errors or significant omissions in lists of |! | assets or creditors;
5-cloaking or exaggeration of the asset or liability, and 6-to contain one or more stipulations |! | contrary to the provisions of subparagraphs first to |! | Article 178 fifth.

They may also challenge the Convention those |! | that had given guarantees real or personal, or |! | who are third possessors of property constituted in |! | guarantee of obligations of the debtor, when the |! | respective creditors have not voted in favor of the |! | Convention.

Article 197. The Convention may contest |! | only within the period of 5 days counted, for |! | all stakeholders, from notification to be |! | concerns article 195.

Challenges that arise out of this |! | deadline will be rejected flat.

Deduction of a challenge to the judicial Convention |! | preventive, the informant trustee, or an expert facilitator |! | in the case of article 177 ter, have the quality of |! | Auditor with the functions established in the |! | Article 207 of the Act, until |! | resolution who has rendered by approved or |! | discarded. The expert facilitator shall in this case be |! | subject to the control of the Superintendence of |! | Bankruptcies, in the same terms as the Trustees.

Article 198. Challenges to the Convention be |! | they will be processed as a single incident between the debtor and the |! | creditor or creditors who made them, or the |! | persons referred to in the final subparagraph of article 196. |!| Any creditor may intervene as third |! | adjuvant. The resolution that falls on the incident |! | It will be notified to the parties by notice.

Article 199. The Convention shall be effective since |! | the term is due to challenge without be |! | they may have filed complaints against her. In this |! | case, and in the second paragraph, will be deemed approved and |! | Court shall declare it so ex officio or at the request of |! | anyone interested.

If the agreement has been challenged, shall be effective as |! | Since cause enforceable resolution that discard the |! | or challenges and declare it approved.

The appeal deducted against of the |! | sentence of first or second instance that discards the |! | or challenges, not suspend enforcement of the |! | failed, even if the losing party requests be granted |! | guarantee of result by the prevailing party.

The resolutions referred to in subparagraphs |! | earlier in this article shall be notified by notice and |! | shall be recourse against them.

Without limiting the foregoing, the judicial Convention |! | preventive will enter into effect, in any case, however |! | the claim that has been filed in your |! | against, if these do not time the accession of |! | creditors representing at least 30% of liabilities |! | voting determined in accordance to the |! | Article 179. In this case, and in the second subparagraph, the |! | acts and contracts executed or entered into by the debtor |! | in the time that mediate between the agreement and the date in |! | that is enforceable resolution that welcome the |! | challenges, not may leave without effect, except thing |! | provisions of article 2468 of the Civil Code.

If the Convention scrapped by resolution |! | firm, the existing rights and obligations between the |! | debtor and its creditors prior to agreements |! | they have been subject of the agreement will be governed by their |! | respective conventions.

5. for the purposes of the Convention article 200.-the Convention obliges the debtor and a |! | all its creditors, have or not crowded to Board |! | that you remember it and have or not had the right to vote, except |! | provisions of the final subsection, by appropriations |! | (anteriores a la fecha de las siguientes resoluciones: a) that order quote Board for the designation |! | facilitating expert, in the case of article 177 |! | TER;

(b) which falls on the proposals of the Convention, |! | in the case of the other judicial conventions |! | (preventivos, y c) that declares bankruptcy, if the Convention is |! | simply legal.

Notwithstanding the above, the Convention does not require a |! | the creditors referred to in the subsection of the |! | Article 191 by debts in respect of which are |! | they have abstained from voting.

Article 201. Approved the Convention simply |! | judicial, cease the State of bankruptcy and will be returned |! | the debtor assets and documents, without prejudice of the |! | restrictions laid down in the Convention itself.

However, if the procedure of |! | qualification necessary for the books of the failed, |! | These will be in the hands of the tribunal it.

Will be also cancelled the registration of the |! | Declaration of bankruptcy that has been practiced in the |! | the conservative's real estate office.

The trustee will present your account complies with the |! | Paragraph 4 of title III of this law.

Notwithstanding the adoption of the Convention, the failed |! | It will be subject to all the disabilities that produces the |! | bankruptcy as it does not get its rehabilitation with |! | accordance with the provisions of this law.

The adoption of the Convention does not prevent to continue |! | the qualification of article 202 bankruptcy procedure. All those who had been awarded |! | bonds real or personal, or are third |! | holders of goods consisting in warranty of |! | subject to the agreement and other third party obligations, |! | to pay those obligations without the opposition of the |! | debtor, may exercise the rights as via de |! | subrogation or refund correspond them only |! | about what touch to the creditor in the Convention. Yes the |! | creditor has been paid only part of what you |! | appropriate according to the agreement, you may exercise your |! | rights relatively to what is left owing him, |! | with preference to persons previously |! | mentioned. The extension of the term of the debt, |! | agreed at the Convention, does not put an end to the |! | liability of the sureties and co-signers, solidarity |! | or subsidiaries, or of the guarantors of the debtor subject to the |! | Convention expires or clothing or mortgages |! | constituted on goods of third parties.

If the creditor voted in favour of the Convention, the |! | (efectos serán los siguientes según los casos: a) no may charge your credit to the guarantors or |! | co-signers, solidary or subsidiary, or to the |! | guarantors, but in the same terms as can |! | charge the debtor under the agreement;

(b) the third owner of the mortgaged property and the |! | the pawned property owner may release warranty |! | paying the debt on the same terms as the |! | stipulated in the agreement by the debtor |! | guaranteed;

(c) novation or dation in payment extinguishes the debt |! | with respect to the guarantors, co-debtors and guarantors before |! | mentioned, to concurrence of the portion of the |! | credit submitted to Convention which was extinguished |! | through them;

(d) the third possessors or owners of the |! | mortgaged or pledged property can release the |! | warranty, paying the amount corresponding |! | whereas the portion of the debt that has been |! | extinguished by novation or payment in kind.
If the creditor did not vote in favour of the Convention, |! | retains their rights without alterations both with regard to |! | the encumbered assets with real guarantees as regard |! | his sureties and co-signers, solidary or subsidiary, |! | and guarantors. However, if the loans were given by |! | extinguished by novation or payment in kind, the |! | fasteners and co-signers, solidary obligation or |! | subsidiaries, and guarantors of the debtor subject to the Convention |! | become extinct in the amount of what the creditor |! | indeed touch on the occasion of such novation or |! | payment in kind.

Article 203. The creditors of a society |! | collective or limited partnership that is bankrupt |! | they may conclude agreement with one or more of the partners |! | solidarity, if joined with the creditors direct from |! | These.

This Convention release solidarity partner |! | that gets him and extinguished the social debt with regard to |! | other partners to concurrence of the quota than |! | This partner should pay.

Social asset will be subject to the regime of the |! | liquidation of bankruptcy, and the proprietary property of the |! | partner with whom has has held the Convention will be |! | applied to the fulfillment of this.

Article 204. Notwithstanding the approval of the |! | simply judicial Convention, the Court declared |! | the bankruptcy will continue to knowing of all processes |! | added according to the provisions of the article |! | 70 article 205. Creditors whose credits are |! | prior to the date of the resolution of the relapse in the |! | presentation of propositions or at the request of |! | designation of an expert facilitator, in your case, but |! | you have not verified them promptly, can |! | demand that the Convention is fulfilled in his favor, while |! | what actions of it are not prescribed |! | result, an incidental procedure that was |! | continue with the debtor, the Court met for the |! | Convention, except that the Pact has been concluded |! | Arbitration referred to in article 178, in whose |! | case will know the Court corresponding agreement a |! | This is. This procedure will act as party |! | any of the creditors of the Convention. When the Convention be on extension of term, |! | This will begin to run for everyone from coming to |! | govern the Convention, any that sean the |! | particular maturities of loans.

Article 206. The Convention will provide the |! | appointment of an auditor, which may or not be |! | trustee of the payroll, and shall have the functions and |! | duties the same point to him. Your compensation will be |! | set in the form determined by the Convention.

The financial controller may only be revoked with the vote |! | of one or more of the creditors representing more than the |! | 50% of the total of the passive right to vote, with the |! | agreement of the debtor, and without this agreement with the vote of |! | one or more of the creditors representing at least |! | two-thirds of the passive right to vote.

Without limiting the foregoing, the Convention is |! | You can designate a Committee of creditors with the |! | powers and duties to point you.

All these people will respond in slight guilt. |!| Only the Trustees of the Payroll will be subject to the |! | control of the Superintendent.

Article 207. The powers and duties of the |! | financial controller shall, unless you remember |! | Another thing: 1. impose of books, documents and |! | operations of the debtor;
2 take account of entries and expenses of the |! | business of the debtor;
3 visar, in his case, the payments to creditors;
4 take care that the debtor does not remove for their |! | and your family's personal expenses other than sums |! | those authorized by the Convention;
5 quarterly account his performance |! | and the business of the debtor, and present the |! | observations that deserve you the Administration this |! | last. This account will be sent by mail to each |! | of creditors;
6 ask the Court before which it transacted the |! | Convention which cite a Board of creditors, provided that thing |! | fit or when prompted it one of them |! | to address issues of common interest. All agreements |! | Board shall be adopted by the majority of the |! | passive of the Convention, with the right to vote.
7 impetrar the precautionary measures which are |! | necessary to safeguard the interests of the |! | creditors, without prejudice to agreements that these |! | they can make. These requests will be processed as |! | incident, and 8. Represent judicial and out-of-court to the |! | creditors to implement the agreements that take |! | in legal form.

Article 208. If the poor condition has aggravated |! | the business of the debtor in the form that makes fear a |! | prejudice to the creditors, may it be subjected to |! | a stricter than the agreed procedure, or be |! | subjected to an intervention if this is not any |! | provided, either declare themselves breached the Convention, to |! | application of creditors representing most |! | absolute liability of the Convention, with the right to vote.

The application to obtain an intervention or |! | This is stricter will be processed as incident. |!| Learn about actions that exercise in conformity |! | at the N ° 7 of the preceding article and the preceding subsection, the |! | tribunal before which is transacted the Convention, unless |! | the arbitration agreement was concluded to be |! | concerned article 178, in which case you will know the |! | Court that corresponds according to this.

6. of the rejection of the Convention article 209. Rejected the propositions of |! | any kind of agreement by not having obtained the |! | required majority for approval, or discarded by |! | any of the grounds mentioned in article 196, |! | can the failed repeat them many times deemed |! | necessary, but shall not apply the provisions of subsection |! | Second, article 188.

When the preventive judicial Convention has been |! | rejected or discarded in any case |! | referred to in the preceding paragraph, the Court |! | necessarily declare the bankruptcy of the debtor, of |! | ex officio and without any further formality.

The Board that rejects Convention propositions |! | judicial preventive must declare the names of a |! | Syndic and one alternate, who the tribunal |! | You must designate the nature of definitive. No |! | they may be appointed to such positions who have |! | been in compliance with the number 1 of article 174.

Should they discard judicial Convention |! | preventive, the Court shall proceed to appoint the |! | Trustees in accordance with the provisions of article 42, |! | without that can appoint in these positions who have |! | been designated as provided in number 1 of the |! | Article 174.

7. of the nullity and non-observance of the Convention article 210. Other actions will not be accepted from |! | invalidity of the agreement that distinctions based on the concealment or |! | exaggeration of assets or liabilities and which had been |! | discovered after the expired |! | challenge Convention.

The nullity of the agreement extinguished right the |! | securities that guarantee it.

The actions of nullity will be prescribed in the term of |! | one year from the date that came to govern the |! | Convention.

Article 211. The Convention may declare |! | failed at the request of any of the creditors, |! | for failure to comply with its provisions. You can also |! | declared unfulfilled in the case referred to in the |! | Article 208.

Actions for breach of the Convention |! | they will prescribe within six months, counted since they have |! | you could be brought.

Article 212. The Declaration of default |! | it invalidates the Convention, but he does not terminate the |! | securities which have guaranteed its total execution or |! | partial.

Persons bound by the above-mentioned securities |! | in the previous paragraph and the third possessors of the |! | encumbered assets with them, as the case may be, shall be |! | heard in the trial of Declaration of non-compliance and |! | be able to stop the continuation of this, paying the |! | outstanding dividends within three days, |! | from the citation.

The amounts paid by the debtor before the |! | Declaration of non-compliance and which produce the |! | realization of the assets of the bankruptcy, will serve as fertilizer |! | debt in case that the surety extends to the entire |! | the stipulated sum; But if you only understand a |! | part of it, them will only release what subtract |! | After cover no caucionada fee.

Article 213. The nullity and Declaration of |! | violation of the agreement are subject to the |! | the summary judgment procedure and will be competent for |! | know of them the Court that processed the Convention, |! | unless the arbitration agreement has been concluded to |! | referred to in article 178, in which case you will know the |! | Court that corresponds according to this.

The sentence which accept the demands of annulment or |! | Declaration of non-compliance, shall be final in both |! | effects, but the debtor is immediately subject to |! | intervention by a trustee who shall have the powers |! | the auditor of article 294 of the code de |! | Civil procedure and those provided for in article 177 |! | bis.

Neither the Declaration of nullity or of |! | failure to have retroactive effect.

Article 214. Once firm resolve |! | declare the nullity or non-compliance, the tribunal de |! | first instance shall declare the bankruptcy of the debtor from |! | ex officio and without any further formality.
Article 215. In the request for an annulment or |! | Declaration of non-compliance with the Convention, the |! | applicant will indicate the name of the Syndic and the |! | the alternate trustee, and only these the Court should |! | designate in the judgment giving rise to demand and |! | declare bankruptcy. These designations will not relapse |! | in those who have served as referred |! | number 1 of article 174.

If it brought more than one request for an annulment or |! | Declaration of non-compliance with the Convention, the judge |! | It shall appoint the trustee designated in one of the demands that |! | to use.

Article 216. Second bankruptcy is the |! | that is declared on the occasion of pronouncing the nullity or |! | failure to comply with an agreement much which are |! | declared by any other cause while existing |! | a Convention.

Acts or contracts of the debtor, executed or |! | at the time that mediate between the date of the |! | resolution issued on the propositions of a |! | Convention or on the application for designation of a |! | expert facilitator that gave rise, depending on the |! | case, and the Declaration of the second bankruptcy, shall be governed |! | by the rules of paragraphs 2 °, 3 ° and 4 ° of title VI |! | of this law.

Article 217. The second bankruptcy returns to the |! | previous creditors in all their rights with regard to the |! | failed.

Will be attended by former creditors with new |! | the distributions of the assets of the bankruptcy by the |! | full amount of their claims, provided that they do not have |! | received any part of that stipulated in the Convention; |! | otherwise, can only concur with the |! | new creditors by the part of the capital of its |! | primitive credits corresponding to the portion not |! | paid on the agreed sum. In any case, both the |! | credits of the old creditors, in which |! | appropriate, of the new, should be |! | verified in the second bankruptcy, except those which the |! | law expressly excepted from this procedure.