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.

Spanish Insolvency Law: the responsibility of directors in a situation of insolvency

The Insolvency Law of Spain protects creditors in case of misconduct or negligence by directors (administradores) of a company in insolvency; such a disposition is specifically useful as it is of utmost importance for there to be confidence in the protection that the economic legal framework offers to creditors. When there is a company in […]

Guidelines and tips to follow in an insolvency proceeding in Spain

This article explains some of the most relevant aspects of insolvency and debt collection proceedings. From a practical point of view, these concepts must be valued considering the possibility that an economic actor may have to participate in an insolvency proceeding when such economic actor is demanded to participate by a creditor, or when an […]

Reform 3/2009 to the Spanish Insolvency Law

The Royal Decree Law 3/2009 of the 27th of March is a recent reform of the principal Spanish rules relating to insolvencies, i.e. the Insolvency Law 22/2003 of the 9th of July. The principal Spanish rules relating to insolvencies are found in the relatively recent Insolvency Law 22/2003 of the 9th of July, approved in […]

Bankruptcy proceedings and their possible effect on prior leveraged buy-out operations in Spain

PDF Eurofenix Winter Edition 2009 Concept and legal prohibition In recent years so-called leveraged buy-outs (LBO) have been very frequent in Spain. These operations are characterised by being acquisitions of a majority percentage of the share capital of a target company, this acquisition being financed via loans obtained from a third party which are guaranteed with […]