Guidelines and tips to follow in an insolvency proceeding in SpainThis article delves into crucial aspects of insolvency and debt collection proceedings in Spain. It highlights the practical challenges faced by economic actors, emphasizing the decision-making process between liquidation and reaching agreements with creditors, which can be influenced by the type of creditor involved. The article also briefly touches on the limited effectiveness of insolvency proceedings in family debt cases.Read more
Reform 3/2009 to the Spanish Insolvency LawIn Spain, the Insolvency Law 22/2003 underwent recent reform with Royal Decree Law 3/2009 (March 27), responding to the global economic crisis. Originally enacted during economic prosperity, the law’s deficiencies over six years prompted modifications in the reform.Read more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
