The Colombian Superintendence of Companies released Official Document 115-300538, which outlines regulations on corporate group insolvency and highlights “share buybacks” as a tool for restructuring. This mechanism allows companies to repurchase their own shares, potentially improving financial health by redefining liabilities. According to IAS 32, redeemable shares are classified as financial liabilities, while optional buybacks are not.
In Spain, Argentina, and Peru, share buybacks are similarly regulated to support corporate financial restructuring in times of crisis or insolvency.
In Colombia, this mechanism aims to enhance transparency and legal certainty in insolvency processes, allowing struggling companies to adjust their capital structure and reorganize finances.