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
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 Position of the Bankrupcy Mediator in SpainThe Entrepreneur Support Act (Law 14/2013), enacted on September 27, 2013, introduced the bankruptcy mediator role. Published in the Spanish Legal Bulletin (BOE), it also brought partial modifications to the Insolvency Act (Law 22/2003) on July 9, 2003.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
Clawback Of Intra-group Guarantees: Group Interest as a Safe Harbour or rather as Pearl Harbour?The benefits of belonging to a group of companies are well known. The integration of companies within a group not only improves each of the companies’ competitive positions within their …Read more
Rising Numbers of Insolvencies in Spain or Express Insolvencies: Safety Net Or Pitfall?The express insolvency mechanism benefits debtors by cutting costs, eases the workload for mercantile courts, and prevents false satisfaction expectations for creditors. This is likely to result in a continued high number of insolvencies as debtors increasingly use this shortcut to obtain the entity’s death certificate.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
