Doe Run: Indecopi begins sanctioning procedure for the Cobriza bankruptcy

The Technical Secretariat for Insolvency Inspection (FCO) of Indecopi initiated a sanctioning administrative procedure within the scope of the insolvency proceedings of Doe Run Perú SRL in liquidation, for alleged infractions of the insolvency regulations, related to the Contract for the Assignment of Mining Rights and Rental of the Cobriza Mining Unit, of September 20, 2021.

This procedure is based on preliminary investigations and is processed in strict confidentiality, in accordance with the provisions of the Single Ordered Text of the Law on Transparency and Access to Public Information.

Once the investigations are completed, the FCO will present its conclusions to the Bankruptcy Procedures Commission (CCO) of Indecopi. If it finds responsibilities for infringements of the bankruptcy rule, it will propose the imposition of the corresponding sanctions.

However, the FCO indicated that it lacks the competence to evaluate the legality of the contract entered into and / or declare its nullity or ineffectiveness, because said prerogatives correspond to the competent judicial authority.

In this sense, in accordance with the principle of legality of administrative procedures, it is pertinent to indicate that the aforementioned administrative authority has the competence to supervise that the actions of the people who intervene in bankruptcy procedures are carried out in compliance with the General Law of the Bankruptcy System and, consequently, process sanctioning procedures for infractions of the aforementioned regulations.

Indecopi in the footsteps of La Oroya

This investigation is in addition to those already initiated previously regarding the process of dación in payment of the Metallurgical Complex of La Oroya, with respect to which the FCO initiated a sanctioning procedure to determine the existence of infractions to the insolvency regulations.

The information contained in this communication refers to decisions made by the technical bodies of the institution, made up of independent professionals who resolve cases according to their specialized knowledge and in accordance with the current legal framework.

The decision-making bodies of Indecopi are autonomous in the exercise of their functions and their decisions are not subject to control by the presidency of the Board of Directors, the general management or any of the managements that make up the administrative structure of Indecopi, according to established in article 21 of its Organization and Functions Law.

Doe Run, in competition since 2010

Since August 16, 2010, Doe Run Peru SRL has been in bankruptcy proceedings, that is, in the hands of a creditors’ meeting. In August 2014, said meeting of creditors agreed on the ongoing liquidation of the company (it carried out its activities while it was liquidated), for which it appointed a liquidator and approved a liquidation agreement.

Currently Doe Run Peru SRL is in the ordinary liquidation process as the term of the current liquidation modality has expired.

Likewise, through Resolution No. 10421-2021 / CCO-INDECOPI, of September 15, 2021, notified on September 20, 2021, the CCO annulled the registration of Alta Sierra Asesores y Consultores SAC as an entity authorized to act as administrator and liquidator of debtors submitted to bankruptcy proceedings.