Proceedings in Spain with a foreign elementWith more frequency, proceedings and lawsuits in Spain are with opponents from non-Spanish-speaking states. In such cases, the law in Spain requires the translation of written documents supporting the claim. Failure to do so may underestimate the written evidence and jeopardize the proceeding.Read more
The risk of using the promissory note as a form of advance payment in SpainThe promissory note is a document of promise to pay a determined amount of money on a given day which is very common in Spain. It is a written document issued by the debtor — an individual, a company, the State — and it may be payable to the bearer or endorsable, that is to say, it may be transferred to a third party.Read more
Debt Collection Procedures in France and SpainDue to historical ties, EU membership, and legislative harmonization trends, French and Spanish laws share commonalities. However, investors face challenges as legal proceedings and terminology differ. In debt collection, French investors need to understand procedures in Spain and potential distinctions from the French system.Read more
The Role of the Mediator in Extrajudicial Payment Agreements in Spain (EPA)Per the European Code of Conduct for Mediators and the Spanish Mediation in Civil and Commercial Matters Act (LM), a mediator must maintain confidentiality regarding information and documents obtained during mediation, with the European Code of Conduct extending this duty to the mediation’s existence (point 4). The LM specifically holds the mediator responsible for any breach of this confidentiality obligation, highlighting its importance.Read more
Justice Protects Preferred-Stock Owners in SpainIn general, Spanish courts are protecting those purchasers of preferred stock who do not meet the profile of a suitable investor for these products nor those who are sufficiently informed …Read more
Features of the Enforcement of Bank Guarantees in SpainThe strict reading of Article 97.2 may harm a creditor with a debtor-specific guarantee, as it implies automatic extinguishment without additional criteria. Unfortunately, the current wording doesn’t support a discretionary judge interpretation, posing a risk of guarantee extinguishment without due consideration.Read more
Manager’s Liability within the Framework of Bankruptcy Proceedings in SpainThe recent Spanish Bankruptcy Law expands the examination of company managers’ liability, supplementing existing provisions in the Public Limited Company and Limited Liability Company Laws, as well as the Criminal Code, within the context of corporate crime. It introduces a classification section in bankruptcy proceedings where the judge assesses the involvement of company managers in the company’s bankruptcy situation.Read more
Spanish Insolvency Law: the responsibility of directors in a situation of insolvencySpain’s Insolvency Law safeguards creditors in instances of director misconduct or negligence during company insolvency, ensuring confidence in the legal framework’s protection for creditors.Read more
Bankruptcy proceedings and their possible effect on prior leveraged buy-out operations in SpainIn recent years, Spain has witnessed a surge in leveraged buy-outs (LBOs), where a majority share of a target company is acquired using loans guaranteed by its assets or repaid through its cash flows. In some cases, the acquisition cost is deferred and paid by the target company itself, often through a merger with a special purpose vehicle created by the investor. This strategy shifts the burden of the acquisition cost to the target company.Read more
