International jurisdiction in insolvency matters
Although the center of main interests of a company is presumably its registered office, courts admit refutation of this presumption if brought by the creditors.
Insolvency or bankruptcy, take place when a company fail to pay their debts. Insolvency declaration leads to a bankruptcy proceeding. Corporate restructuring takes place when a company encounters a difficult situation and management decides to change the outer and inner structure and direction of the company.
Restructuring plans in Spain: Keys to the insolvency reform
The entry into force of the Law transposing Directive (EU) 2019/1023 introduces reforms in the insolvency field to provide agile and effective instruments to improve insolvency procedures and facilitate the maintenance of viable companies in Spain. Restructuring plans are one of the central elements.
End of the insolvency moratorium in Spain: consequences for debtors
The bankruptcy moratorium in Spain, in force since 14 March 2020 and already extended several times, ends on 30 June 2022.
End of the moratorium on insolvency proceedings in Spain: consequences for creditors
After the insolvency proceedings begin, creditors have a one-month limit to communicate their claims against the insolvent debtor.
New bankruptcy moratorium in Spain until 30th June 2022
The Government of Spain has extended the bankruptcy moratorium for the third time until 30th June 2022. Insolvency debtors will not have a legal obligation to file for bankruptcy until the middle of next year.
The foreign creditor in bankruptcy proceedings in Spain (3): Termination of contracts
Regarding 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.
The foreign creditor in bankruptcy proceedings in Spain (2): The communication of credit
The 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.
The foreign creditor in bankruptcy proceedings in Spain (1): Bankruptcy processing
Declaring 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.
The foreign creditor in bankruptcy proceedings in Spain (4): Liability of debtors and directors
Spanish 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.
Bankruptcy in Spain (3): Directors’ Liability in bankruptcy proceedings
Although 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.