The commercial relationship between a debtor company (the "Debtor") and its creditors (the "Creditors") is set forth in the Venezuelan Commercial Code (Código de Comercio), as well as the Civil Code (Código Civil). The Law on Mortgages over Moveable Assets and Pledges without Transfer of Possession (Ley de Hipoteca Mobiliaria y Prenda sin Desplazamiento de Posesión, the "Special Mortgage Law") and the Law on Trusts (Ley de Fideicomisos, the "Trust Law") are also relevant.
The Commercial Code is a very old law. The bankruptcy and moratorium proceedings are not appropriate for dealing with the problems that arise in modern cases of insolvency or near-insolvency. In addition, traditional security interests, as set forth in the Commercial Code and the Civil Code, as well as the Special Mortgage Law, are, to a great extent, incompatible with modern restructurings. Accordingly, negotiated non-judiciary solutions and the innovative use of new security interests are recommended, and it is
