Informative Note: The new Insolvency Law (RDL 1/2020)In the following informative note, we address the Royal Legislative Decree 1/2020, of 5 May, that approves the redrafted text of the Insolvency Law, and revises its structure and key characteristics.Read more
How to determine the insolvency status of the company in the insolvency proceedingsThe state of insolvency obliges companies to apply for the insolvency proceedings. We analyse some facts that can help to identify this status, as well as the most commonly used accounting formulas to predict it: the acid test and the Altman Z-score.Read more
Express Insolvency Proceedings: an alternative for companies without assetsIn Spain, the Insolvency Law provides for the processing of express insolvency proceedings for those companies with no assets nor properties (or that are of a residual nature), with the corresponding savings in time and costs that ordinary insolvency proceedings would normally entail.Read more
Insolvency Proceeding versus Company LiquidationIn times of crisis, companies may find themselves in a legal cause for dissolution. In this article, we analyse when they should initiate a bankruptcy proceeding and when they should opt for the dissolution and liquidation of the company.Read more
Negligent Bankruptcy in Spain and the Liability of the Parent CompanyDuring the insolvency proceeding, the so-called ‘Sixth Section’, if opened, will determine whether or not the bankruptcy is negligent, as well as the liability of the company directors. We analyse if it is possible to attribute this liability to the parent company.Read more
Changes for shareholders after the amendment of the Corporate Enterprises ActOn 24th May 2019 was published the draft law amending the Corporate Enterprises Act and other financial rules in Spain. Its objective is to adapt them to the European legislation (Directive (EU) 2017/828) in terms of promoting the long-term involvement of shareholders in listed companies.Read more
Force Majeure and Rebus Sic Stantibus Clauses in the context of the COVID-19 CrisisForce majeure and rebus sic stantibus clauses are particularly relevant in the context of the COVID-19 health crisis. These legal instruments allow for a modification of the terms of contracts in extraordinary and unpredictable circumstances such as at present.Read more
The Temporary Suspension of Employment Contracts in Spain or ERTEAmong the measures approved by the government after the decree of the state of alert in Spain, the temporary suspension of employment contracts or ERTE (temporary employment regulation file) takes on special relevance for the company.Read more