ARGENTINA Law and Practice Contributed by: María Belén Espiñeira, International Transport & Logistics Legal Consultants – MB Espiñeira & Abogados
the arrest and the one to be arrested belong to the same ownership, when requesting the arrest or when the credit accrued. 4.8 Other Ways of Obtaining Attachment Orders The Argentine Civil and Commercial Procedural Code sets forth different precautionary meas - ures to obtain security, such as seizure of assets, credits and rights, prohibition of disposal of mov - able or immovable property, judicial intervention, and the possibility to request a more convenient measure aimed at obtaining a more appropriate security in view of the particular case. 4.9 Releasing an Arrested Vessel A vessel that is arrested may be released from arrest if adequate security is given to substitute the security granted by the arrest. Adequate security may be given in the form of another asset to be arrested, a local bank guarantee, a cash deposit, an insurance policy issued by a local company or an insurance policy obtained locally by the Argentine shipping agents of the foreign vessel, or by giving Argentine National Treasury Bonds. A club’s letter of intent or a foreign bank’s letter of guarantee may be effective to get the vessel released from the arrest; however, if the arrestor objects to its effectiveness or appropriateness, the judge may not admit the substitution. 4.10 Procedure for the Judicial Sale of Arrested Ships After an enforceable title is in place, the court shall – before ordering the judicial sale of a national ship – request from the National Regis - try of Ships a report of the vessel’s mortgages, liens and encumbrances. If the vessel flies a foreign flag, such request shall be made to the corresponding consular authority. If liens and
encumbrances do not exceed the vessel price, the court shall order the judicial sale of the ship, and the funds obtained from the auction shall be distributed among the creditors. If liens and encumbrances exceed the vessel price, credi - tors may request the initiation of the special pro - ceeding of privileged creditors on the vessel. In principle, the private sale of an asset subject to judicial execution is not permitted under Argen - tine law, as the judicial auction/sale process is the mechanism established to ensure transpar - ency, equality among creditors, and the maximi - sation of value for the benefit of the interested parties. However, certain exceptions or alternatives may be available, depending on the specific circum - stances of the case and the express authorisa - tion 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 judi - cial 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 maritime claims into two groups. The first group is formed of credits resulting from non-contrac - tual 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 credits of the second group. 4.11 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 restruc -
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