Restructuring and Insolvency Newsletter - April 2020
Spain -
Restructuring and insolvency regulation is being adapted to the new context of COVID-19
The economic difficulties arising from COVID-19 health crisis has led companies to seek new solutions to deal with the insolvency situations. In these sense, the measures that are being approved by the Spanish Government include relevant news in the field of restructuring and insolvency. Since March 16, Garrigues has published various alerts and practical comments related to these new regulation which can be found throw the links below:
- Publication of royal decree-law mapping steps to be followed in justice system procedures
- Companies face a return to non-essential activities, new rules on administrative and procedural time periods and the renegotiation of agreements
- Companies should pay attention to the new moratoriums and deferrals, and to analyzing their net worth and financial situation
- Companies face new employee-related measures, the first tranche of guarantees and the beginning of the personal income tax season
- What should companies watch out for over the coming days?
- Royal Decree-Law 8/2020, of March 17, 2020 launches urgent and extraordinary measures to confront the economic and social impact of COVID-19
European Commission analyzes the legal frameworks in member states on insolvency and defaulted debts
In this study dated on December 3, 2019 the European Commission analyzes the legal frameworks on insolvency and defaults in the various member states; specifically, the various individual and collective loan enforcement systems –and their effectiveness for recovering non-performing loans (NPLs).
Judgments
- Jurisdiction to hear a case related to a temporary layoff procedure due to force majeure caused by COVID-19 lies with labor courts not the insolvency judge
- A productive unit to be transferred in liquidation may include administrative concessions
- Assignment of claims and restrictions on exercising the right to redeem debts at their transfer price for individual claims or claims included in NPL portfolios
- Ability to prededuct social security contributions for work required to conclude the liquidation
- The relevant time for determining the classification of a claim for reimbursement of the guarantor is when the guarantee was provided
- Directors’ liability does not stretch to debts guaranteed in favor of the company before ground for winding up
- Fault-based qualification of the insolvency proceeding cannot be founded on two different grounds for fault where they stem from the same event
- Fresh start does not include the non-borrower mortgagor
- Law of the state of the opening of insolvency proceedings is applicable to actions that are a direct consequence of the proceedings
- Purchaser of an NPL portfolio may apply for a compulsory insolvency proceeding of the transferred debtor after six months from the purchase
News and events
- Chambers Europe confers highest recognition on the Garrigues Restructuring and Insolvency Department
- Legal 500 recognizes the excellence of the Garrigues restructuring and insolvency practice
- Global Restructuring Review includes Garrigues in the top category for its restructuring and insolvency practice
- Adrián Thery participates in Fourth Company Law Congress held in Málaga
- Iván Heredia moderates panel discussion organized by FIDE on real estate collateral
- Iván Heredia participates in the Conference on the future of real estate collateral in a globalized world organized by the Association of Registrars of Spain and CIDRE
- Adrián Thery participates in panel discussion organized by FIDE on urgent precautionary measures at the time of COVID-19
- Farewell Antonio Fernández, former Garrigues partner and pioneer in the field of restructuring and insolvency in Spain
Contacts
