ARGENTINA Law and Practice Contributed by: María Belén Espiñeira, Espiñeira Maritime Lawyers
However, certain exceptions or alternatives may be available, depending on the specific circumstances of the case and the express authorisation of the court. Any interested party may object to the judicial sale of the vessel. If no objections are entered or if they are dismissed by the court, the judicial sale of the vessel shall be ordered, and the sums obtained therefrom shall be distributed among the creditors, observing the order of preference provided by the Argentine Naviga - tion Law. The Argentine Navigation Law divides mari - time claims into two groups. The first group is formed of credits resulting from non-contractual claims and has preference over the claims of the second group, which is formed of credits resulting from contractual claims. The credit of the mortgagor has preference after the credits of the first group and before the cred - its of the second group. 5.11 Insolvency Laws Applied by Maritime Courts The Argentine Insolvency and Bankruptcy Law (No 24,522), as amended by Laws 25,563, 25,589 and 26,086, provides for a debt restructuring proceed - ing that is similar to the one set forth under Title 11 of the US Bankruptcy Code. Once a debtor files a judicial restructuring proceeding ( Concurso preven- tivo de acreedores ), all existing actions to enforce claims against it – except those claims arising from a pledge or mortgage – shall be stayed and trans - ferred to be continued by the bankruptcy court and no similar actions may be brought. However, any existing contentious proceeding against debtors, where their liability has not been yet determined, shall continue its regular course before the same court where the claim was originally brought, up to the final judgment. Privileged creditors secured by pledges or mortgages shall be allowed to continue enforcement actions, but the court may order a stay of such proceedings for a period no longer than 90 days. Moreover, the court shall not authorise precautionary measures or judicial sale unless the claimant proved the credit was veri - fied in the judicial restructuring proceeding. Among privileged creditors, those whose claims are secured by maritime liens set forth by the Argentine Naviga - tion Law may request the formation of the special process of maritime privileged creditors. Moreover, a
vessel mortgagee may request the judicial sale of the vessel, over which maritime privileged creditors will concur following the ranking of priority set forth by the Argentine Navigation Law. If, after the judicial sale of the vessel, any part of the purchase price remains, it will be transferred to the relevant bankruptcy court. Despite the aforesaid, the debtor and other interested creditors may request the bankruptcy court to lift all precautionary measures pending over those assets considered essential for the continuance of their com - mercial activities, such as a vessel might be for her owners. Under these circumstances, the judicial sale of a vessel property of owners that are under a judi - cial restructuring proceeding shall be subject to the judicial bankruptcy proceedings. 5.12 Damages in the Event of Wrongful Arrest of a Vessel The Argentine Navigation Law does not contain any express provision about wrongful arrests; however, the most recognised doctrine has considered that, in the case of an intentional wrongful arrest, the arres - tor shall be liable unlimitedly for all the damages and losses resulting from the illegitimate immobilisation of the vessel. In this respect, the burden of proof to demonstrate the arrestor’s liability would be difficult to meet, as the intention of the arrestor, the wrongful arrest and the causation link between the arrest and the damages will need to be demonstrated. The Argentine Navigation Law only provides that the liability of the arrestor who – without acting maliciously – obtains the arrest of a vessel and does not ultimate- ly initiate actions of claim is limited to the damages caused by the immobilisation of the vessel, until the moment at which the ship-owner substitutes said arrest with another security, and to the expenses relat - ed thereto (Section 540, Argentine Navigation Law). 6. Passenger Claims 6.1 Laws and Conventions Applicable to the Resolution of Passenger Claims Argentina approved its accession to the Athens Con - vention relating to the Carriage of Passengers and their Luggage by Sea and its Protocol (1974) by means
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