During 2023, there were 91 companies who presented themselves to bankruptcy in Uruguay. Although the figure indicates that there were more than seven companies per month, it represents a decrease of 7.1% in the total, compared to 2022.
The Commercial Defense League (Lideco) carried out its annual survey in which it updates the number of companies that appear before the bankruptcy justice to enter bankruptcy proceedings. In 2023, the total number decreased compared to the previous year, and there were 91 companies that requested access to this measure.
Of the total, 53 were necessary contests —that is, they were requested by any of the debtor’s creditors—, while the remaining 38 were volunteers —at the request of the debtor. In the year-on-year comparison, the necessary competitions decreased by 18.5%; and volunteers increased by 15.2%.
Although there was a more even distribution between these two options, Lideco still considers that, since 2021, “the number of necessary contests predominates over the number of voluntary contests.” For the institution, it would be necessary to ask “if the difference in favor of the necessary competitions is due to the lack of incentive of debtors to use the legal tool of the bankruptcy proceedings.
Likewise, the companies that entered bankruptcy in 2023 belong to very varied areas; although companies in the sector transport, of the industry construction, extraction minerals, bakeries, medicinal cannabis and holders of estate were the most repeated in the final balance.
Chihuahua Club SAtravel agency Travelgenio, and fintech Wenance They were the companies that entered bankruptcy proceedings for larger amounts.
How were the last five years at a business level?
According to Lideco data, 2019 was the year in which the highest number of bankruptcy applications were registered, with a total of 108 applications. However, and contrary to what could have been expected in a context of retraction of economic activity As was the Covid-19 pandemic, in 2020 and 2021, this figure dropped considerably: there were 71 and 51 applications, respectively.
The institution considers that this decrease also responds to the particular context of that time, given that “the exceptional nature and generality of the impact on economic activity would have led to a greater tolerance with debtors” in those years.
This tolerance existed “both on the part of commercial creditors and creditors of the regulated financial sector”, which during the pandemic “gave refinancing and soft loans to address the financial situation of companies in difficulty,” they said from Lideco.
In 2022, the number of applications rose again to 97 companies.
Sanctioned bank accounts
On the other hand, Lideco also reported on the bank checking accounts sanctioned as of November 2023. According to the data collected, in the accumulated year-on-year period – since November 2022 -, 810 suspended bank current accounts and 257 closed accounts were registered.
This meant a growth of 18.59% and 39.67%, respectively, compared to the same period of the previous year.
Source: Ambito
