Conciliated Organization

The Panama Center for Conciliation and Arbitration (CeCAP), a private justice administration entity founded in 1994, offers the business community Business Reorganization Services through Conciliation, based on Law 212 of April 29, 2021, which establishes “Special Regime for Conciliated Reorganization Processes carried out due to the National Emergency caused by the COVID-19 Pandemic.”

The objective of the conciliated reorganization process is to promote the recovery and preservation of companies as sources of employment and to obtain the resources necessary to meet their obligations.

During the conciliation process, the selected conciliator will authorize the debtor to file a notice of intent with the civil circuit judge or insolvency judge. Once filed, this will grant the debtor company bankruptcy protection for a maximum of six (6) months and suspend the initiation of other legal proceedings.

CeCAP will administer the conciliated reorganization of companies through regulations governing the conciliation procedure and each of its phases, including the selection of the conciliator, as well as the regulation of fees and administrative expenses.

Individuals engaged in commerce and commercial companies with a business domicile, branch, agency, or establishment in the Republic of Panama may opt for the conciliated reorganization process in accordance with the Law, provided they meet the following requirements:

1. 1. That they are in a situation of default, imminent insolvency or foreseeable lack of liquidity due to the national state of emergency imposed by the COVID-19 pandemic..
   2. That they have a minimum of 24 months of continuous operation.
   3. That they submit the notice of intent within a maximum period of 2 years, counted from the date of promulgation of the Law, without prejudice to the fact that the conciliation agreements may be executed in a period after two years.

They are entitled to file a conciliated reorganization process:

1. 1. The debtor or their representative.
   2. LaThe Board of Creditors, through its representative.

It is mandatory for creditors or the debtor, as applicable, to appear at the conciliated reorganization proceedings once requested by CeCAP.

CeCAP has a Conciliation Regulation for Business Reorganization, affordable rates for micro, small, medium, and large businesses, as well as a List of Qualified Conciliators for Conciliated Reorganization.