Company with cash flow insufficient to service its debt
Viability diagnosis and design of reorganization plan before deterioration is irreversible.
Corporate Reorganization
Comprehensive advisory on corporate reorganization and insolvency under Law 1116 of 2006 and the new Law 2437 of 2024 that decentralizes the procedure before Chambers of Commerce.
Contact UsCorporate Reorganization
The Colombian corporate insolvency regime rests on Law 1116 of 2006, complemented by recent Law 2437 of 2024 that made permanent the transitional mechanisms created during the pandemic (Decrees 560 and 772 of 2020). The main novelty: the corporate recovery procedure can now be led by the Chamber of Commerce of the debtor's domicile, with a maximum duration of three months, offering SMEs a fast, decentralized way to reorganize debt before reaching liquidation.
Law 2437 introduces concrete mechanisms: liability capitalization (creditors receive shares in exchange for credit discount), liability discharge (elimination of specific obligations with judicial authorization), and sustainable debt pacts (multi-year agreements with installments aligned to real cash flow). These tools, well used, save viable companies that only have a temporary liquidity problem.
Our lawyers accompany companies through the full cycle: financial and legal diagnosis, decision on the appropriate route (reorganization under Law 1116 before the Superintendencia de Sociedades, or chamber procedure under Law 2437), preparation of the application, negotiation with creditors, judicial validation when applicable, and monitoring of agreement compliance. We work with forensic accountants and financial advisors to build verifiable plans.
Problems We Solve
Financial creditor announces execution or credit acceleration
Admission to reorganization automatically suspends individual executions and forces collective renegotiation.
Multiple labor, tax, and financial obligations past due
The process allows ordering all obligations in a single agreement with legal priorities respected.
Need for capitalization to exit the crisis
We advise on liability capitalization: converting creditors into shareholders with benefits for both parties.
Our Approach
1
Financial, Tax, and Labor Diagnosis
We work with your accountant or an allied one to map all obligations, calculate real projected cash flow, and evaluate viability of reorganization vs. liquidation.
2
Appropriate Route: Chamber or Supersociedades
We determine whether the most convenient procedure is Chamber of Commerce (Law 2437, up to 3 months) or Superintendencia de Sociedades (Law 1116, greater depth).
3
Negotiation, Judicial Validation, and Monitoring
We negotiate with all creditors the reorganization plan; we handle judicial validation when required; and we accompany compliance throughout the agreement's duration.
Frequently Asked Questions
What companies can use Law 2437?
Legal entities and merchant natural persons subject to the insolvency regime of Law 1116 of 2006. Law 2437 offers a more agile procedure before Chambers of Commerce (up to 3 months), but the substantive requirements are the same: cessation of payments or imminent inability to pay.
How long does a corporate reorganization take?
The chamber procedure (Law 2437) has a maximum duration of 3 months from the start communication. The procedure before Supersociedades (Law 1116) may take longer. The resulting payment plan can extend up to 8 years under ordinary conditions and longer in special circumstances.
Can my partners be declared personally responsible?
The general regime of Law 1116 protects partners when they have acted in good faith and with diligence. However, Law 2437 maintains strict rules on revocatory actions for acts in detriment of creditors made before the process (suspicion period).
Can I keep operating during reorganization?
Yes. The regime's philosophy is to preserve the company as a productive unit. It continues operating under the administrator's control (can be the same person) and supervision of the designated promoter or Supersociedades. There are restrictions for extraordinary acts (asset disposal, new guarantees) that require authorization.
15+
Years of experience
500+
Clients served
98%
Satisfaction rate
24h
Response time
Need legal advice?
Our team of lawyers is ready to help you. Contact us today for a consultation.
Contact Us