How to apply for bankruptcy proceedings in SpainRoyal Decree-Law 8/2020 introduces changes to the deadlines for applying for bankruptcy proceedings in Spain, whether voluntary or necessary. It also empowers the judges to reject applications, up to two months after the end of the state of alarm.Read more
Director’s Liabilities during the State of AlarmRoyal Decree-Law 8/2020 amends certain obligations of company directors when there is a legal or statutory cause for dissolution or if the company finds itself in a state of insolvency.Read more
Informative note on Insolvency Measures – RDL 16/2020Informative note on the Royal Decree-Law 16/2020, of 28th April, regarding procedural and organisational measures to deal with Covid-19, especially concerning measures on insolvency proceedings.Read more
Closing a Subsidiary in Spain: With or Without Bankruptcy Proceedings?When partners of a subsidiary in Spain decide its closing due to economic reasons, the question arises as to how to do it. Depending on each specific case, the company may be dissolved and liquidated with or without bankruptcy proceedings.Read more
Unsuccessful enforcement by the creditor as a basis for the necessary bankruptcy applicationUnsuccessful enforcement by the creditor implies the existence of a title by which enforcement has been effected, without sequestration resulting in sufficient unencumbered assets for the payment of the outstanding credit.Read more
Court approval of refinancing agreements in SpainThe majority of Spanish bankruptcy proceedings end in favor of the debtor. The preliminary phases aim to achieve continuity of businesses that are in critical financial situations. Judicial approval is tantamount to a quasi-automatic resolution of a refinancing agreement, which put minority dissenting creditors at major disadvantages.Read more
Legal framework for restructuring and insolvency proceedings in SpainThe legal framework for restructuring and insolvency proceedings governs the reorganization of debt. An insolvency proceeding is an in-court-restructuring procedure that consists of obtaining an insolvency order from a judge. An out-of-court restructuring is where a debtor negotiates directly with its creditors.Read more
Out-of-Court Restructuring in SpainIn 2014, the Spanish government implemented the out-of-court restructuring procedure through the Royal Decree Law. Its objective is to help debtors avoid bankruptcy by negotiating with their creditors. Given the time and effort it takes, an out-of-court restructuring can be very favourable to both parties.Read more
Developments in the legal framework of restructuring and insolvency proceedings in SpainBy the introduction of a new law, the Spanish legal framework on restructuring and insolvency proceedings is more adjustable to a debtor facing bankruptcy. Still, the difficulty of implementing a complete legal framework lies in covering all possible situations of insolvency.Read more
The liquidation of companies in SpainThe liquidation of a company in Spain is a legal option chosen in a shareholder’s meeting. It leads to the splitting of the company’s assets after complying with its obligation of payment to creditors.Read more
