Issue of debentures by series (art. 337 LGS)
Article 337 of the General Companies Law allows the issue of debentures to be divided into series, with equal rights within each series and no new series until the previous ones are subscribed.
What article 337
Article 337 governs the issue of debentures by series.
The issue may be divided into series. Rights shall be equal within each series. No new series may be issued while the previous ones are not fully subscribed. Any debenture holder may seek the nullity of an issue made contrary to the provisions of this article.
Source: Law 19.550, art. 337 — InfoLEG (updated official text)
Commentary
As with shares (art. 190), new series of debt may not be issued without completing the previous ones, avoiding 'stacking' issues without placing them. Equality within the series protects the debenture holders.
Do you need advice on this matter?
The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.
Contact the firm