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.
Challenging the list of creditors refers to the legal process of questioning or contesting the inclusion or exclusion of specific creditors in a compiled list within an insolvency proceeding or arrangement with creditors. It allows parties, such as creditors, to dispute the accuracy, legitimacy, or completeness of the creditor list submitted by the debtor or the insolvency administration.
When debtors have vanished without a trace, it is imperative to adhere to legal protocols to ascertain their whereabouts. Within this article, we present a comprehensive guide to lawfully discovering the location of a debtor.
Creditors with at least 5% of liabilities can request a judge to appoint an insolvency administrator for a report in case of insolvency without assets. Note that the requesting creditors will cover the administrator’s fees.
The Spanish insolvency reform reduces the liability of company directors for the obligation to convene the general meeting on the grounds of dissolution. The court’s knowledge of negotiations with creditors limits the directors’ liability for corporate debts.
Act 16/2022 on the reform of the Insolvency Law took effect on 26 September 2022, triggering significant changes to streamline insolvency proceedings in Spain. The elimination of pre-existing liquidation plans is one of the modifications.
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.
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.
The bankruptcy moratorium in Spain, in force since 14 March 2020 and already extended several times, ends on 30 June 2022.
After the insolvency proceedings begin, creditors have a one-month limit to communicate their claims against the insolvent debtor.
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.