Insolvency and Bankruptcy

Out-of-court restructuring agreement (APE)

You have a group of creditors with whom you can negotiate directly and are seeking a faster solution than traditional reorganization proceedings. The out-of-court restructuring agreement (APE) allows the restructuring to be agreed outside the courts and then submitted for court approval.

In one line

The APE is not a full reorganization proceeding: it is negotiated first and only then submitted to a judge for approval. Nor is it a private agreement without further effect: once approved, it binds even creditors who did not sign it.

First steps

State of suspension of payments or general economic difficulties
Updated detail of liabilities and creditors
Accounting documentation with sufficient support
Text of the agreement and its payment terms
Calculation of the creditor and capital majorities
Certifications and signatures required for the filing

What the APE is

The out-of-court restructuring agreement (Acuerdo Preventivo Extrajudicial) is governed by articles 69 to 76 of Law 24,522. It is an agreement the debtor negotiates with its creditors outside the traditional insolvency process and then submits for court approval to extend its effects.

The APE is available to a debtor in suspension of payments or facing economic or financial difficulties of a general nature. Its appeal lies in the flexibility of the prior negotiation combined with the force that court approval gives it.

Majorities and court approval

To submit the agreement for approval, the debtor must obtain the majorities of creditors and capital required by law. Once those majorities are reached, court approval is requested and notices are published so creditors may raise objections.

Once approved, the agreement takes effect with respect to all unsecured creditors with a claim arising prior to it, even those who did not sign it. That extension is the main advantage over a simple private agreement.

When it is advisable

The APE tends to be useful when liabilities are concentrated among a few creditors willing to negotiate and a faster, less rigid alternative to reorganization proceedings is sought. It nonetheless requires careful documentation of the agreement and its accounting support.

We assess whether the APE is viable in your case, prepare the negotiation with creditors and carry out the filing and court approval. Each situation is different, and we offer no guarantee of outcome.

Common mistakes

Negotiating the agreement without checking the required legal majorities
Poorly documenting creditor consent
Underestimating the accounting support required for court approval
Ignoring the deadline and mechanics of objections
Assuming a private agreement has the same effect without court approval

Frequently asked questions

What is the difference between the APE and reorganization proceedings?

In the APE, the agreement is negotiated with creditors outside the process and then submitted for court approval. Reorganization proceedings, by contrast, run entirely through the court from their opening, with the trustee's involvement.

Does an approved agreement bind creditors who did not sign it?

Yes. Once the APE is approved, its effects extend to unsecured creditors with a claim arising prior to it, even if they did not sign it, under Law 24,522.

Do I need to be in suspension of payments to use the APE?

The APE is available both to a debtor in suspension of payments and to one facing economic or financial difficulties of a general nature, under articles 69 et seq. of the law.

Can creditors object to the approval?

Yes. After the notices are published, there is a period during which objections may be raised. That is why it is essential to properly document the agreement and the majorities before filing it.

This page is informational and does not replace professional advice on your specific case. It does not imply any promise of results.

Let's assess the APE for your case

If you can negotiate with your creditors, the APE may offer a fast solution. Contact us to assess its viability and prepare the agreement.

Ask via WhatsApp