Entries by Insolvency Law

Validated Refinancing Agreements in Spain

The mechanism for legal ratifcation of the refinancing agreement was reviewed under the Real Decree-Law. One of its amendments included extending the effects to non-participating creditors (without collateral) and clarifying its scope via vis-à-vis creditors (with collateral). This mechanism is making the conversion of credits into equity loans much more efficient in Spain.

Responsibility of Administrators in the Dissolution of Companies for Losses in Spain

The dissolution of any capital-based company in Spain which incur into losses has reduced the equity amount significantly. It would be beneficial for partners of the companies to either contribute to offset losses or to increase the capital of the company by contributing and receiving shares in the company. However, this implementation can face some challenges due to the varied type of losses.