Recordation of recordable acts during the negotiation stage of insolvency proceedings

Abstract

In insolvency proceedings, the insolvent party's rights over its assets are affected not just by the judicial ruling giving rise to the proceedings, but by many other judicial rulings given during the negotiation stage, and as such these rulings have legal and practical consequences regarding their recordability in the Property Registry. Specifically, the judicial ruling approving the outcome of the settlement negotiations would have just such legal and practical consequences, by determining the entry into force of the settlement and the ending of the effects of the receivership, specifically the limitation of the insolvent party's right to dispose of its assets. The settlement itself may contain measures than restrict or limit the exercise of the insolvent party's rights over these assets. Both the said judicial ruling and the content of the settlement with legal and practical consequences must be recorded as part of the requirement of chain-of-title so that any acts of disposal, whether voluntary or compulsory, verified by the insolvent party may be subsequently enforceable, and so that any recordations of claims or attachments ordered subsequent to the settlement by a judge other than the judge directing the insolvency proceedings may be enforceable.