CHILE

1. By what mechanism(s) can foreign court appointed office holders seek to employ the law
of your jurisdiction to assist in corporate cross-border insolvency cases in respect of foreign
companies?
 
Article 308 of the Law 20.720 which XXXXXXXXX, establishes that foreign court appointed office
holders will recognized by the local authorities after presentation of documents que acreditan su
designación en el país extranjero, and will then be legitimized to request and appear directly
before a local court.
 
This foreign representatives will be able to request before the competent court in Chile, the
recognition of the foreign procedure in which they have been appointed.
Once the foreign procedure is recognized, its representative will be entitled to:
 

1. Participate in any procedure started in Chile with respect to the same debtor; as
well as request to hold the development of local procedures against the debtor;
2. Request precautionary measures or the asset management.

 
2. What remedies are available pursuant to each of those mechanisms in particular, but
without limitation, in relation to:
 
a) The acquisition of information
The recognized foreign court appointed office holder must inform without delay to the
competent court about:

1. Any important change in the situation of the recognized foreign procedure; and
2. Any other foreign procedure in regard to the same debtor. 

b) The securing of assets

Article 318 of the Law 20.720 allows the Chilean competent court to:
 

1. Suspend any enforcement measure against the debtor goods present in Chile.
2. Entrust the foreign representative, or any other person designated by the competent
court, the management or the distribution of all or fraction of the debtor goods situated
in Chile.
3. arrange the examination of witnesses, the submission of legal evidence or the
provision of information about debtor’s business (

The article 319 establishes the effects of recognize a main foreign procedure. Since the
recognition will be suspended:
 

1. Any actions (current or new) or procedures about the assets, rights, obligations or
responsibilities owned by the debtor.
2. Any enforcement measure (medida de ejecución)against the debtor assets, and
3. The exercise of the Right to transfer or pledge debtor assets, as well as arrange in any
other form the debtor assets.

 
  
 
c) Saying procedures
The cross-border insolvency regulation does not incorporate specific saying procedures, therefore
will be necessary appeal to oral proceedings granted by the Law in respect of local insolvencies.
 
    d) Restructuring arrangements
a) Restructuring Proceedings are supervised by an Interventor/ appointed by competent court.
b) Once granted the Restructuring request, the Debtor shall enjoy the Financial Protection.
c) The Debtor will publish and submit to the competent court a proposal of Restructuring
Agreement.
d) All creditors must accredit before the competent court their capacity to act in the Proceeding.
e) The Restructuring Agreements will only affect creditors whose claims arise prior to the
resolution approving the Restructuring request.
f) The Judicial Restructuring Agreement will be deemed approved, and  become effective once
the term to challenge it has expired.
 
3. What, if any, are the notable features and limitations of those remedies?
(i) La quiebra en Chile sólo aplica respecto de los bienes situados en Chile;
(ii) De haber acreedores chilenos, ellos tendrán un derecho preferente de sus deudas
de pago sobre los bienes situados en Chile.
 
4. What is required procedurally to employ such mechanisms and/or remedies and how long
does the court process take?
Any request for recognition shall be accompanied by:
a) An authorized copy of the resolution declaring the foreign proceedure initiated   and
appointing the foreign representative;
b) Any other document issued by an authority of the foreign State in the territory of which the
said proceeding has been instituted, and which enables the competent court to be fully
convinced of its existence and the appointment of the foreign representative.
c) A statement duly indicating the particulars of all foreign proceedings instituted in respect of
the debtor of which the foreign representative is aware.

No existen plazos pre-establecidos que regulen esta materia.

 
5. By what mechanism(s) can foreign court appointed office holders seek to employ the law
of your jurisdiction to assist in corporate cross-border insolvency cases in respect of local
companies?
Article 308, points that representatives authorized will have standing to appear directly before
the Chilean courts.
As well, enables foreign creditors participation in a bankruptcy proceeding initiated in Chile or to
request the initiation of one.

 What remedies are available pursuant to each those mechanisms in particular, but without
limitation, in relation to:
 
a)   The acquisition of information
Any notice of the Cross-Border Insolvency Law shall be infomed to Local Courts.
b)   The securing of assets
Foreign creditors shall enjoy the same rights as domestic ones in regard commencement of
bankruptcy proceedings and participation therein. (refer to 2.b)
 
c)   Distribution and dissolution
The procedure can be initiated voluntarily by the Debtor Company in the terms of Title 2, first
paragraph or initiated by the request of any of the creditors in the terms of Title 2, second
paragraph (Chapter V of the Law).
 
6. What, if any, are the notable features and limitations of those remedies?
A new Insolvency Proceeding may not be initiated under this law before the competent court that
granted the foreign procedure recognition.
No se puede iniciar un nuevo juicio mientras no se ha pronunciado sobre el procedimiento
extranjero.

7. What is required procedurally to employ such mechanisms and/or remedies and how long
does the court process take?
Procedimiento del 1.