Thoughts on insolvency proceedings in Ecuador in the post-COVID-19 era

COVID-19 caused a global health crisis and affected commercial activities and it reflects a dangerous accumulation of obligations with stakeholders or other agents and others. Therefore, companies require a range of alternatives to determine whether to exit the market or remain in it. Through a preliminary doctrinal and ius-economic review, this journal article aims to identify the preventive bankruptcy system’s scope in Ecuadorian legislation. The first section provides an overview of insolvency proceedings. The second section describes the ‘historical-doctrinal’ contextualisation of the Concurso Preventivo. The third section will explore the legal (regulatory) framework of the Concurso Preventivo in Ecuador. The fourth section will analyse the Concurso Preventivo Law. Then, the fifth section surveys the Ley Organica de Emprendimiento e Innovacion (Organic Law on Entrepreneurship and Innovation). Later, the sixth section refers to claim holders in insolvency proceedings, incentives theory, the competing interest theory, and the relevance of asymmetric levels of information. Finally, some general conclusions are submitted as an opening to further brings out a second stage as a further and compulsory discussion.