Madrid’s commercial courts approve their good practice guidelines for sales of productive units in insolvency proceedings
Spain -
On January 22, 2021 Madrid's commercial court judges approved a set of agreed procedures for handling insolvency proceedings in which liquidation is requested together with the insolvency order, as well as a number of criteria for transfers of productive units in these and other insolvency processes.
The guidelines include, among others: (i) the parameters for meeting the definition and the elements included in the productive unit; (ii) the methods to be used for its valuation; (iii) the terms of purchase bids for productive units; (iv) criteria regarding the impact of transactions of this type on preferred creditors; and (v) the regime for purchasers taking over the contracts included in the productive unit.
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