Validated Refinancing Agreements in SpainThe 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-Ã -vis creditors (with collateral). This mechanism is making the conversion of credits into equity loans much more efficient in Spain.Read more
Responsibility of Administrators in the Dissolution of Companies for Losses in SpainThe 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.Read more
Taxation Aspects of the Insolvency Law in SpainThe Royal Decree-Law incorporates tax measures designed to enhance the legal pre-bankruptcy framework for refinancing agreements. These measures seek to facilitate consensus between debtors and creditors, maximizing asset value and minimizing or deferring liabilities to prevent insolvency.Read more
Restructuring of Entrepreneurial Debt in SpainRoyal Decree-Law 4/2014 revamps regulations on Insolvency Law’s refinancing agreements, broadening their potential content and clarifying rules for extending effects to non-signatory or dissenting creditors. This allows involvement of creditors with tangible securities in certain circumstances.Read more
Common Measures for Collective Agreements in SpainProperty executions necessary for a business activity cease for up to four months from the debtor’s initial communication with the court regarding negotiations with creditors. This pause aims to facilitate successful agreements and prevent the accumulation of executions by uncooperative creditors.Read more
The New Liquidities in Insolvency Proceedings in SpainHalf of the newly invested funds in refinancing lack insolvency privilege, requiring timely payment. This percentage temporarily rises to 100% for enhanced protection.Read more
New regulation of the Spanish Insolvency Public RegisterThe Royal Decree Law 829/2013 regulates the Spanish Insolvency Public Register. The aim of this Law is to provide more transparency on public bankruptcy results and proceedings. This Register will collect information related to bankruptcy proceedings in Spain. This collection will provide public access to more accurate information about the entities involved in bankruptcy proceedings.Read more
New Spanish Public Registry for BankruptcyThe Official Spanish State Bulletin (BOE) published the Royal Decree 892/2013, which regulates the Public Registry for Bankruptcy. This new Decree will allow banks, consumers, partners, and creditors to have …Read more
How does the Pre-Bankruptcy Process for Creditors work in Spain?To understand the so-called pre-bankruptcy process, consider the provisions of Article 5.1 of the Spanish Insolvency Law (IL). Under this Article, The debtor must request the declaration of insolvency within two …Read more
My company cannot meet its debts. Do I need to apply for the voluntary insolvency proceeding?The answer is yes. According to Article 5 of the Insolvency Act 22/2002 of 9 July, the debtor must request the declaration of insolvency within two months of the date …Read more
