BOGOTA Jan 4 Colombian regulators on Friday
ordered the liquidation of Interbolsa SA after its
brokerage, the largest in the Andean nation, collapsed last year
and dented confidence in the country's capital markets.
The move is the latest in a series of measures by the
government to shore up investor sentiment following the failure
of Interbolsa brokerage, which found itself without enough cash
to pay its debts.
The Superintendent of Societies, which monitors Colombian
companies, had sought to reorganize Interbolsa SA and stave off
its liquidation, but the company failed to provide details to
creditors and other financial information necessary and so has
become unviable, the regulator said in a statement.
All Interbolsa properties and goods will be embargoed, the
statement said. Interbolsa SA is the parent company of Grupo
The collapse of the broking arm of Interbolsa rattled
Colombia's capital markets last year but investors took a
wait-and-see approach and have taken the debacle in their
The government has said the brokerage's cash problems were
due to poor management and not an indication of wider liquidity
problems in Latin America's fourth biggest economy.
A criminal investigation by the Attorney General's office is
under way to establish whether there were possible conflicts of
interest, share price manipulation and "hiding" of information
by the brokerage.