Leaders League: Chile’s Universidad La República declared bankrupt due to salary arrears

The bankruptcy declaration follows a lawsuit brought by employees over unpaid wages. The university failed to attend court for proceedings in June, and magistrate Jacqueline Benquis declared the educational institution in bankruptcy.

The court ordered the university’s assets to be sold off in order to pay the outstanding salaries. The workers were represented by Pedro Eguiguren Cosmelli, founding partner of Chilean law firm Eguiguren Abogados, and who stated that the aim of the process was to achieve payment for the plaintiffs, and not declare the university bankrupt.

However, the failure on behalf of the university to meet its payment obligations with its employees meant that the declaration of its insolvency was unavoidable in order to be able to use the value of its assets to meet the payment obligations.
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