The Superintendence of Societies received notification from the Court of King's Bench of Alberta regarding Canacol Energy's insolvency process and a request to recognize it in Colombia under Law 1116. KPMG, as monitor of the Canadian process, requested suspension of executions against assets of Colombian subsidiaries and protection of their operations. Superintendent Billy Escobar clarified that this does not initiate a local process but international cooperation mechanisms to ensure business continuity.
The Superintendence of Societies was notified via Initial Order by the Honorable Court of King's Bench of Alberta (CCCA) regarding the insolvency process of parent company Canacol Energy. The entity received the request to recognize this process under Title III of Law 1116 of 2006. Canacol had previously announced its intent to seek recognition of the reorganization process initiated in Canada, the United States, and Colombia. This week, it was learned that the request also reached U.S. offices.
KPMG, acting as Monitor and Foreign Representative of the main Canadian proceeding under the CCAA, submitted the request through its agent in Colombia. Among the requests are: recognition of the foreign insolvency process; validation of KPMG's status as monitor; suspension of execution proceedings against assets of Canacol Energy Colombia S.A.S., Cne Oil & Gas S.A.S., Cantana Energy Sucursal Colombia, and Cneog Colombia Sucursal Colombia; suspension of measures impeding the normal operation of the debtors; maintenance of bank accounts under the debtors' control to cover operational and administrative expenses; validity of the mentioned contracts; and prevention of executions of real guarantees in favor of particular creditors to protect the estate.
The Superintendence of Societies acts as the competent authority to homologate decisions from foreign courts, protect the assets of societies in Colombia, and coordinate international judicial cooperation, ensuring equitable administration of cross-border insolvencies that protects all creditors and interested parties, including the debtor.
Superintendent Billy Escobar emphasized: “this procedure does not imply the opening of a local reorganization or liquidation process, but the execution of international cooperation mechanisms that allow business continuity and the orderly attention of obligations of the debtor societies". He added: “The recognition of the foreign process will allow decisions adopted by the foreign authority to have effects in Colombia, guaranteeing coordination between jurisdictions and protection of the debtor's assets against possible individual executions".