ABSTRACT
This chapter begins with the bankruptcy procedure in Chile and analyzes the ways in which this process affected those firms that went bankrupt. It analyzes the bankruptcy procedure according to Chilean law. The chapter attempts to identify the implications this procedure had on the functioning of manufacturing firms going bankrupt. It looks at the experiences of manufacturing firms, trying to determine how their normal functioning was altered by the bankruptcy process. The bankruptcy procedure in Chile is ruled by the law of bankruptcies Number 18.176 of October 1982, which replaced law number 4558 from June 23, 1931. With respect to the assets involved in the bankruptcy procedure, the law establishes that "the situation of bankruptcy produces an indivisible state for the bankrupt firm and the creditors. The chapter also looks at the reactions and adjustments of bankrupt manufacturing firms.
