Colombia: Prosandbagging or Antisandbagging?
Corporate attorney Sergio Alayon published an article in Legal Industry Reviews about "sandbagging" clauses in sale and purchase agreements (SPAs). He explains that the purpose of these clauses is to distribute risks between buyer and seller in mergers and acquisitions (M&A) and that there are two types: "prosandbagging" and "antisandbagging." The implementation of these clauses is relatively new, and so there does not currently exist a regulation governing them in Colombia. In this article, Mr. Alayon describes the arbitral jurisprudence and judicial regime with respect to these clauses.