Corporate case law

Great Brands Inc. s/ concurso preventivo (National Commercial Court of Appeals, Chamber C, 27/12/2002)

Whether a foreign company whose assets and activity were essentially connected to an equity interest in an Argentine company could seek reorganization in Argentina, and which corporate-law rules applied. The Commercial Court of Appeals reversed the initial dismissal and allowed the reorganization proceeding to go forward, analyzing Sections 123 and 124 of the LGS and the foreign company’s actual integration into local business activity.

CNCom., Sala C27/12/2002

Case caption

«Great Brands Inc. s/ concurso preventivo»

What was at issue

What was decided

The Commercial Court of Appeals reversed the initial dismissal and allowed the reorganization proceeding to go forward, analyzing Sections 123 and 124 of the LGS and the foreign company’s actual integration into local business activity.

Extractable criterion

The Commercial Court of Appeals reversed the initial dismissal and allowed the reorganization proceeding to go forward, analyzing Sections 123 and 124 of the LGS and the foreign company’s actual integration into local business activity.
The holding should be read in light of the legal interest protected in the area of foreign companies, not solely by reference to the documentary form of the act.
Evidence of the specific facts and of their impact on corporate or creditor rights is decisive when applying the precedent’s doctrine to another case.

Citation: CNCom., Sala C, «Great Brands Inc. s/ concurso preventivo», 27/12/2002 — Jurisprudencia societaria y comercial

Practical application

It is a leading case on foreign companies, effective seat, principal business purpose in Argentina, and eligibility for reorganization proceedings.

Frequently asked questions

What is the main takeaway from the case?

Does the rule apply automatically today?

No. The current statutory framework and the specific facts must be verified. Historical precedents retain doctrinal value, but later reforms may alter how they apply.

What should be proven in similar litigation?

The relevant corporate or commercial documentation, the parties’ conduct, the specific harm, and the facts connecting that harm to the central issue in the case: Whether a foreign company whose assets and activity were essentially connected to an equity interest in an Argentine company could seek reorganization in Argentina, and which corporate-law rules applied.

Informational commentary on a published ruling; it does not constitute advice nor guarantee an outcome. Application to a case depends on its circumstances.

Do you need advice on this matter?

The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.

Contact the firm