Market: Colombia

Amendment to Colombia's exchange regime will affect the hydrocarbons sector

Substantial modifications to the exchange regime applicable to companies in the hydrocarbon sector have been introduced by the Colombian Central Bank. The bank’s board of directors passed the resolution on May 11 2001. Resolution 2 amends articles 48, 49, 50 and 51 of the Bank's Resolution 8 of 2000.

06 July 2001

Foreign reinsurance companies may act as finance entities

Under Colombian foreign exchange regulations, foreign indebtedness may be obtained by Colombian residents only through financial entities such as local banks and foreign banks duly registered with the Central Bank.

22 June 2001

Ayerbe Abogados assists in supermarket deal

Felipe Ayerbe-Muñoz, Guillermo González-Rodríguez and Rodrigo Ayerbe-Arango of Ayerbe Abogados’ Bogotá office assisted Carulla Vivero SA, one of the leading hypermarket and supermarket companies in Colombia, in the US$25-million acquisition of the marketing business of Comfama, the leading supermarket business in Medellín.

22 June 2001

New bid process for PCS licences in Colombia

On June 4 the Colombian Council for Economic and Social Policy (a cabinet-level body for the coordination of economic and social policy chaired by the President of the Republic) approved the procedure for the award of three licences to provide personal communications systems (PCS) in Colombia from 2002.

15 June 2001

Cárdenas & Cárdenas helps Enka negotiate international debt restructuring

Cárdenas & Cárdenas Abogados has assisted Enka de Colombia SA, one of the largest fibre manufacturing companies in Colombia, in the negotiation of an International Debt Restructuring Agreement with a syndicate of banks which includes Dresdner Bank Lateinamerika Aktiengesellschaft, ING Barings, Banque Européene pour l’Amérique Latine (BEAL) SA, Lloyds TSB Bank Plc, Société Générale and Standard Chartered Bank.

08 June 2001

Banks no longer recognise inflation

By Circular No. 014 of April 2001, effective January 1, the Colombian Bank Superintendent has ordered banks and other financial institutions under its supervision to eliminate the adjustments based on the increase of the Consumers Price Index (CPI). For income tax purposes, however, losses on adjustment of net worth are still deductible.

08 June 2001

Brigard & Urrutia, Prieto & Carrizosa Asociados and Clifford Chance advise in energy merger

Bogota-based Brigard & Urrutia Abogados advised in the acquisition of Proeléctrica & Cía SCA by the AES Corporation, a US company leader in the power sector, which closed recently after nearly a year of negotiations. Brigard & Urrutia acted as local counsel of the AES Corp.

01 June 2001

Colombia likely to ratify air convention

Colombia has never ratified the 1948 Geneva Convention on the International Recognition of Rights in Aircraft.

01 June 2001

Figueroa Sierra & Asociados Abogados appoints new lawyer

Colombian firm Figueroa Sierra & Asociados Abogados has strengthened its corporate law services through the inclusion of Luis Fernando Sarmiento Salcedo, as internal consultant.

25 May 2001

Merger and split-off of companies subject to liquidation procedures

The Superintendency of Companies recently changed a 10 year doctrine pursuant to which companies under liquidation procedures could not become subject to mergers or split-offs, since these transactions would fall outside the scope of the relevant company's corporate purpose which, while the company is being liquidated, is limited to carrying out activities tending to the company's liquidation.

25 May 2001

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