Guzmán Ariza Represents PAWA in First Major Bankruptcy Proceeding in the Dominican Republic

PAWA Dominicana (Pan Am World Airways Dominicana) is the international flag carrier of the Dominican Republic, with scheduled flights to multiple destinations in the Caribbean and the United States.

Guzmán Ariza is representing PAWA in the first major bankruptcy/restructuring proceeding in the Dominican Republic under the new Mercantile Restructuring Law 141-15, a process which will involve hundreds of national and international creditors. The Restructuring Court in Santo Domingo accepted the firm’s bankruptcy filing request and has authorized preliminary proceedings to begin.

The legal team assisting Pawa is comprised of Partners Fabio Guzmán Ariza, Fabio Guzmán Saladín, Alberto Reyes and Rhadaisis Espinal. Other areas of specialisation are involved, such as disputes resolution, labour law, corporate, finance, taxation and consulting advice.

The Firm already obtained the first favourable sentence in Dominican Courts and the Conciliator figure was appointed.  This case will make history in the country since many international institutions are involved:  AERODOM-Dominican Airports; IRS; Civil Aviation Institute; several US international airports; IATA; SABRE; Menzies Aviation; SWISSPORT.

In January 2018, without prior notice, the Civil Aviation Authority of the Dominican Republic suspended PAWA’s operations for a period of 90 days, alleging nonpayment of airline and airport fees, leaving thousands of passengers stranded all over the Caribbean. Within a few days the airline was left with no choice but to file for bankruptcy.