The recent bankruptcy of RG Hotels and its impact on the market have once again put on the table the need for a legal framework to allow for orderly restructuring or settlement of failed companies.

A bill providing an adequate legal framework for companies facing financial difficulties that would allow them to be reorganized without having any adverse effects on third parties is one of the proposals that the Banking Association of Panama has been trying to bring to fruition for years, without success. The effects still being felt by companies and investors from the bankruptcy of RG Hotels reflects the need to promote legislation, which “… would be supported by the banking regulator, Ricardo Fernandez, Superintendent of Banks of Panama, who also confirmed an interest in the subject to ANPanamá. ”

See also: “RG Hotels in Panama: A failed investment ”

Fernandez added that “… “It is an issue that deserves a thorough review by the major players in the economy. It is an issue that should be handled with a global vision of the impact on the economy.'”

“… In other countries there are laws on restructuring that have allowed companies to take a breath and to get ahead without affecting others, or in other cases such as investigations or mismanagement, administrators can be appointed while processes run their course. One example is Newland Properties, the developer of the Trump Ocean Club in Panama. The project ran into difficulties in paying debt issued in the US market, and defaulted, but filed for Chapter 11 in that country and restructured its debt. “

Source: anpanama.com