Liquidation by the trustee (common security) (art. 349 LGS)
Article 349 of the General Companies Law provides that, with common security and other creditors, the liquidation be carried out by the trustee judicially in the form of an insolvency proceeding.
What article 349
Article 349 governs the liquidation by the trustee under common security.
If the debentures were issued with common security and there are other creditors, once liquidation has been resolved, the trustee shall proceed to carry it out judicially in the form of an insolvency proceeding, in accordance with the bankruptcy law. It shall be the necessary receiver and liquidator and may act through an attorney-in-fact.
Source: Law 19.550, art. 349 — InfoLEG (updated official text)
Commentary
With no special privilege, and there being other creditors, the liquidation is carried out through insolvency proceedings in order to respect the order of privileges. The trustee assumes the role of receiver/liquidator.
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