Act 16/2022 Reform of the Insolvency LawAct 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.Read more
Extension of the insolvency moratorium in Spain until 14 March 2021Royal Decree Law 34/2020, published on 18 November 2020, establishes an extension of the insolvency moratorium (previously established until 31 December 2020) until 14 March 2021.Read more
Informative note on Insolvency Measures – RDL 16/2020Informative note on the Royal Decree-Law 16/2020, of 28th April, regarding procedural and organisational measures to deal with Covid-19, especially concerning measures on insolvency proceedings.Read more
Closing a Subsidiary in Spain: With or Without Bankruptcy Proceedings?When partners of a subsidiary in Spain decide its closing due to economic reasons, the question arises as to how to do it. Depending on each specific case, the company may be dissolved and liquidated with or without bankruptcy proceedings.Read more
Legal framework for restructuring and insolvency proceedings in SpainThe legal framework for restructuring and insolvency proceedings governs the reorganization of debt. An insolvency proceeding is an in-court-restructuring procedure that consists of obtaining an insolvency order from a judge. An out-of-court restructuring is where a debtor negotiates directly with its creditors.Read more
Seizure of a main residence in Spain due to debts to Social SecurityThe Entrepeneurs Act aims to find a different solution for debt collection procedures by facilitating a second opportunity to self-employed workers affected by the debt collection procedure. Read more
Merry-Go-Round of Amendments to the Spanish Insolvency LawThree partial reforms of the Spanish Insolvency Law have already been approved by means of Royal Decree-Laws dated on March 2014, September 2014 and February 2015. The three main purposes sought are: enhancement of prepetition restructuring deals; extension of pre-insolvency refinancing agreements to composition agreements and offer a second chance for individual creditors.Read more
New Effects of Filing for Pre-Insolvency in Spain: 5 Bis CommunicationOn March 8, 2014, Spain introduced Royal Decree-law 4/2014, known as the New Reform, to enhance the Spanish Insolvency Law. Acknowledging the inflexibility in pre-insolvency and insolvency systems, the reform aims to boost refinancing discussions. It achieves this by establishing a more secure pre-insolvency environment, safeguarding the debtor’s key assets against enforcement by unsecured creditors.Read more
Restructuring of Entrepreneurial Debt in SpainRoyal Decree-Law 4/2014 revamps regulations on Insolvency Law’s refinancing agreements, broadening their potential content and clarifying rules for extending effects to non-signatory or dissenting creditors. This allows involvement of creditors with tangible securities in certain circumstances.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
