As of December 28 1999 Colombia has a new tool to confront the economic crisis which has threatened the viability of some enterprises. By means of Law 550 of 1999, new regulations intended to help entrepreneurs and their creditors find a solution involving the redemption of the companies, were approved. Among others, Law 550 provides for the elimination of various legal obstacles which prevented profitable companies in difficult financial situation from achieving a recovery. Additionally, the law allows entrepreneurs and their creditors to reach an agreement in order to restructure the companies' financial obligations. The following is a brief description of the most important aspects of this law.
March 01, 2000