Fresh resources in insolvency recovery processes Los recursos frescos en los procesos recuperatorios de insolvencia

Abstract

The purpose of this paper is to explain the scope of the concept of fresh money, its usefulness to overcome the economic crisis of the companies and the constitution of guarantees, the legal flexibility, the promotion of pre-insolvency credits to first class and the granting of advantages as incen­tives provided by the legislator for those who grant resources. The article states that the Bankruptcy Statute and the Emergency Decrees promote the granting of fresh resources and are in harmony with the recommenda­tions of international entities. However, the figure in our legal system can work in a better way, so that debtors have the possibility to develop their corporate purpose during the negotiation of the agreement or prevent the crisis with new resources. Additionally, two solutions are proposed that will complement the insolvency regime, contribute to working capital and ulti­mately to the normalization of credit relations. The first one proposes that those who adopt behaviors that contribute to improve the working capital share the priority with the tax credits. The second consists of the creation of a pre-bankruptcy scenario in which the debtor may obtain the necessary resources to avoid the crisis.