Peru’s INDECOPI issues new mandatory compliance rule

INDECOPI’s specialized court for insolvency proceedings issued the new precedent of mandatory compliance that redefines the rules governing the management of the assets of a debtor subject to an insolvency proceeding.

The court has established that the payment of insolvency claims during the period in which the enforceability of the debtor’s obligations is suspended constitutes an irregular act of disposition of assets, subject to administrative sanctions.

The ruling establishes that the payment of insolvency claims using the debtor’s assets, after the publication of the debtor's insolvency status in the INDECOPI’s Insolvency Bulletin, during the period of suspension of enforceability of the debtor's obligations provided in articles 17.1 and 17.2 of the country’s insolvency laws constitutes an act of disposition of assets that does not relate to the ordinary course of the debtor’s business.

This new criterion resolves a long-standing debate on whether a debtor may make payments of insolvency claims during the period of suspension of the enforceability of its obligations, alleging the need to continue with its operations.

Henceforth, any payment of insolvency claims made during such suspension will be considered sanctionable, regardless of the purpose of such payment.

The precedent reinforces the principle of equal treatment among creditors and the need to safeguard the integrity of the debtor’s equity during the insolvency proceedings.

The team specialized in insolvency law of Santiváñez Abogados played a key role in the issuance of this precedent, representing the defense of one of its clients with a robust argumentation that contributed decisively to the court’s adoption of this new interpretative criterion.

INDECOPI is Peru’s specialized autonomous public agency responsible for dealing with administrative matters related to commercial competition and copyrights in the country.