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Restructuring and Insolvency Alert - March 2026
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Constitutional Court judgment that declares the general insolvency system law inapplicable to educational entities
By means of Judgment 428/2026, issued on March 9, 2026, the Constitutional Court declared the constitutional grievance appeal filed by Universidad Alas Peruanas to be well-founded and, as a consequence, the General Insolvency System Law (hereinafter, the “LGSC”) inapplicable to the claimant, ordering the nullity of the insolvency proceeding initiated against it and declaring that Indecopi lacks competence to subject Universidad Alas Peruanas to an insolvency proceeding.
The Constitutional Court based its judgment by indicating that the special regulation of the educational service in its different modalities has as its objective the preservation of the entities that provide such service, but, mainly, the protection of the education they provide to students, therefore—according to the Constitutional Court—the LGSC affects not only the functioning of the educational entity, but also its very continuity.
Therefore, the judgment indicates that the provisions of the LGSC cannot be applied to educational entities at all levels, since they carry out an activity that has a special constitutional regulation for the provision of the educational service.
Consequently, the judgment concludes, it is not possible to subject an educational entity to an insolvency proceeding, therefore Indecopi lacks competence to process the applications submitted for that purpose, since this—according to the Constitutional Court—may indirectly affect an important group of university students.
Although this judgment is binding only for the insolvency proceeding initiated against Universidad Alas Peruanas, the criterion established by the Constitutional Court would restrict the filing of new insolvency applications against educational entities.
For further information, please contact Guillermo Puelles (gpuelles@estudiorodrigo.com), Jorge Trelles (jtrelles@estudiorodrigo.com), Gaspar Flores (gflores@estudiorodrigo.com) and/or Renzo Rossi (rrossi@estudiorodrigo.com).