PANAMA Law and Practice Contributed by: María de Lourdes Marengo and Joaquín De Obarrio, Patton Moreno & Asvat
2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership The Insolvency Law establishes and regulates two types of proceedings, reorganisation and liquidation, both of which may be voluntary or involuntary. 2.9.3 Co-Ordination, Recognition or Relief in Connection With Overseas Proceedings The Insolvency Law contains provisions on cross-bor - der insolvency, based on the UNCITRAL Model Law on Cross-Border Insolvency. These provisions are applicable to cases in which: • a foreign court or a foreign representative requests assistance in the Republic of Panama in connec - tion with a foreign proceeding; • assistance is requested in a foreign state in con - nection with a proceeding conducted under the Insolvency Law; • a foreign proceeding and a bankruptcy insolvency proceeding in the Republic of Panama are being processed simultaneously with respect to the same debtor; and. • creditors or other interested parties, located in a foreign state, have an interest in requesting the commencement of a proceeding or in participating in a proceeding in the Republic of Panama, which is being processed in accordance with the Insol - vency Law. 2.9.4 Effect of Lessee’s Insolvency on a Deregistration Power of Attorney Generally, a power of attorney would be deemed terminated when so stated in the document itself by affixing a term or if the grantor revokes it. A liquidation proceeding would not cause a power of attorney to be deemed void or terminated. 2.9.5 Other Effects of a Lessee’s Insolvency During a reorganisation proceeding, the lease would remain in place allowing the parties to renegotiate its terms. During the financial protection period, the les - sor may not initiate any executory proceedings save for a default caused by the reorganisation itself and the aircraft would only be deemed as the property of its registered owner.
of attorney for the enforcement of a ship mortgage through the private sale of a vessel. There are no pro - visions under aviation laws of Panama recognising the irrevocability of powers of attorney. Panama is a signatory of the Cape Town Convention and Protocol whereby IDERAs are permitted. The recognition of the irrevocability of an IDERA under the Cape Town Con - vention remains to be tested. 2.8.11 Owner’s/Lessor’s Consent The consent of the lessee is not required to export the aircraft. However, if the lessee refuses to deliver the aircraft, the owner, mortgagee or lessor must obtain a court order. The owner, mortgagee or lessor must obtain an IDERA and a deregistration power of attor - ney to increase the likelihood that it will be able to export the aircraft. The aircraft does not need to be in Panama at the time of deregistration and/or export. 2.8.12 Aircraft Export Permits/Licences The ACC does not issue export permits/licenses. 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft The AAC does not charge costs/fees/taxes in respect of the export of an aircraft. 2.8.14 Practical Issues Related to Deregistration of Aircraft There are no other significant practical issues that an aircraft owner or mortgagee or lessor should be aware of in respect of the deregistration of an aircraft in the Republic of Panama. 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations Law 12 of 2016 (the “Insolvency Law”), which estab - lishes the insolvency proceedings regime and related provisions, regulates restructurings, reorganisations, insolvencies and liquidations in the Republic of Pan - ama.
461 CHAMBERS.COM
Powered by FlippingBook