January 4, 2013 / 6:46 PM / 5 years ago

Colombian regulators move to liquidate Interbolsa's parent

BOGOTA, Jan 4 (Reuters) - 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 Interbolsa.

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 stride.

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.

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