COVID-19 Regulations: Measures taken by the Superintendency of Banks of Panama
29/04/2020COVID-19 Regulations: Recent provisions related to lease agreements in Panama
12/05/2020[vc_row][vc_column][vc_column_text]
The Superintendency of the Securities Market issued Agreement No. 03-2020 of March 20, 2020, which establishes special and temporary measures for the abbreviated registration of modifications to certain terms and conditions of public offerings of securities registered with the Superintendency of the Securities Market (also “SMV”), namely:
(a) maturity date of the securities, dates and form of payment of interest or principal, (b) interest rate,
(c) financial reasons and/or conditions,
(d) date of redemption of the securities, form or reasons for requesting redemption of the securities and other payments related to the redemption, and
(e) period for the declaration of non-compliance for the correction of facts that may constitute events of non-compliance or causes of early termination (in no case may this correction period be greater than thirty (30) calendar days).
This Agreement is applicable to the modifications and conditions of the public offering of securities registered with the Superintendency of the Securities Market, of those issuers, who have payment obligations to disburse or conditions and/or financial reasons to comply with from the entry into force of the Agreement (March 24, 2020) until September 30, 2020.
Issuers to whom the provisions of the Agreement apply are exempt from submitting the formal application for registration of modification stipulated in Agreement No. 4-2003 of April 11, 2003.
It should be noted that Agreement No. 03-2020 does not establish special or abbreviated measures for the modification of terms and conditions of public securities offerings, but rather, it establishes special and temporary measures for the registration with the SMV of the modifications of terms and conditions of the public securities offerings mentioned above. This means that the approval procedure for the modification of terms and conditions of public securities offerings established in the respective information prospectus, security or other offering documents must also be complied with. When the public offering documents whose modification is intended do not contemplate the percentage required for the authorization of modifications to the terms and conditions of the issue, 75% of the acceptances of all holders of said securities will be required.
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