Morales y Besa advised LarraínVial in the assignment of credits

October 24, 2017

Morales y Besa successfully advised LarraínVial, in the assignment of credits by Banco de Chile to two investment funds, as part of a reorganization agreement. The two funds are managed by LarraínVial and Euroamérica S.A..

The borrower of the credits is Caja de Compensación de Asignación Familiar La Araucana, which proposed to its creditors on 2016, a judicial reorganization agreement within an insolvency procedure, which was approved by its creditors. Morales & Besa advised both in the assignment agreements and incorporation of one of the investment funds administered by LarraínVial.

The assignment of credits subject to insolvency reorganization proceedings is not regulated in the applicable law, so the transaction involved not only the negotiation of commercial and legal terms of the agreement, but also implementing the assignment so it had effects within the reorganization proceeding, in order to ensure the procedural substitution of the assignor by the assignees in such proceeding.

The team of Morales & Besa was led by partner Myriam Barahona, senior associates Ignacio Delpino, Orlando Palominos and M. Teresa Manubens and associate Bernardo Mora.