The foreign creditor in bankruptcy proceedings in Spain (3): Termination of contractsRegarding the termination of contracts with reciprocal obligations in the context of bankruptcy declaration, the Spanish regulations distinguish between contracts pending fulfilment by one of the parties or by both parties.Read more
The foreign creditor in bankruptcy proceedings in Spain (2): The communication of creditThe deadline for the communication of credit by the foreign creditor is one month after the publication of the declaration of bankruptcy in the Spanish Official Gazette (BOE). Although it is not mandatory, the foreign creditor should make such communication for its qualification and subsequent payment.Read more
The foreign creditor in bankruptcy proceedings in Spain (1): Bankruptcy processingDeclaring insolvency proceedings in Spain entails its consideration as “main bankruptcy” and implies the inclusion of the debtor’s assets, regardless of whether or not they are in Spain, and that, with certain exceptions, Spanish law applies.Read more
The foreign creditor in bankruptcy proceedings in Spain (4): Liability of debtors and directorsSpanish bankruptcy regulations list the conducts that determine the liability of the directors in bankruptcy proceedings. The consequences of such behaviour include disqualification, loss of rights associated with the position of a creditor of a bankruptcy or a sentence to cover the insolvency deficit.Read more
Bankruptcy in Spain (3): Directors’ Liability in bankruptcy proceedingsAlthough Royal Decree-Law 5/2021 exempts directors from the duty to file for insolvency proceedings, it does not exempt them from the responsibility to avoid the winding-up of the company.Read more
Bankruptcy in Spain (2): Mechanisms and measures to prevent corporate insolvency in SpainPre-bankruptcy mechanisms and labour, corporate or procedural measures can prevent and restrain the high number of insolvency filings expected following the insolvency moratorium in Spain.Read more
Bankruptcy in Spain (1): New moratorium to request insolvencyOfficial data reveal a sharp increase in insolvency filings in 2021. Estimates suggest that after the extended moratorium on insolvency proceedings until 31 December, the number of insolvency proceedings will rise significantly.Read more
Extension of the insolvency moratorium in Spain until 14 March 2021Royal Decree Law 34/2020, published on 18 November 2020, establishes an extension of the insolvency moratorium (previously established until 31 December 2020) until 14 March 2021.Read more
Pre-insolvency, an alternative for the survival of the companyPre-insolvency is a procedure defined in Article 5 of the Insolvency Law in Spain as a final extension for the company to redirect its financial/economic situation.Read more
Objectives and advantages of pre-insolvency proceedings in SpainThe crisis may drive companies into insolvency. In these cases, the management body must adopt the fairest solution for all creditors, with the purpose to resolve the critical situation of the company. Pre-insolvency may be an alternative.Read more